Ihug to list through owner iiNet

By PETER GRIFFIN

Internet provider ihug is undertaking a long-anticipated stock exchange listing, but it will be as a secondary listing through Australian owner iiNet whose shares trade on the ASX.

Around 79.4 million shares will be listed at current prices, but the company is not seeking to raise new capital. Iinet will have a market capitalisation of $220 million.

It joins a number of Australian companies including Telstra, ANZ and BHP which have secondary listings in New Zealand.

Iinet said a listing here was appropriate because around 25 per cent of the shareholding was based locally.

Ihug's founders Nick and Tim Wood had variously considered listing ihug as they sought a few years ago to sell the company.

Iinet posted a profit of A$1.5 million for the half year to December 31 and paid a 2.5c dividend.

IiNet shares rose to nearly A$3.50 each last year but are now around A$2.50.