Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Poor market debut for iSelect

Health insurance comparison provider iSelect has had a less than impressive debut on the Australian share market.

Shares in health insurance comparer iSelect have sunk by more than 15 per cent in their first day on the share market.

The 13-year-old company's share price opened at $1.76 when it began trading on the Australian Securities Exchange at noon on Monday, below the $1.85 shareholders paid for the stock ahead of its $215 million listing.

The shares continued to fall and closed at $1.56, down 29 cents, or 15.7 per cent.

That equates to a $75 million drop in iSelect's market value in its first four hours as a publicly listed entity.

The wider market was also lower, down by about 1.5 per cent.

IG market strategist Evan Lucas said iSelect faced strong competition from the privately-owned comparethemarket.com.au, plus the prospect of big insurers like Insurance Australia Group, AMP and Suncorp starting their own comparison websites.

"The technology that iSelect is offering is not groundbreaking and it's not as hard as it looks," he said.

"It does look like iSelect may struggle over the next coming months."

Mr Lucas said low barriers to enter the insurance comparison market would have seen iSelect struggle, even on a day when the share market was rallying.

Damien Waller, the executive chairman and co-founder of iSelect, said the company's float was a "major milestone for the company".

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: AMP, Suncorp
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: shares slide, ASX listing, iSelect
Latest Blog Posts
Whitepapers
  • Don’t Rip and Replace - Wrap and Renew!
    The abundance of legacy applications in the contact centre can trap a business into rigid, inefficient processes and introduce undue complexity. A unified, omni-channel desktop can transform customer experience without the cost and complexity of rip and replace. This whitepaper explains how companies can save time and money by taking advantage of existing resources in a new way.
    Learn more »
  • Omni-Channel Customer Service Demands the Intelligent Contact Centre
    In response to changing customer trends in an increasingly mobile and digital world, the contact centre must also evolve from its traditional focus on voice- and email-based customer service into the intelligent contact centre. This whitepaper details the key qualities needed to produce and maintain an omni-channel, context-aware customer engagement optimization platform.
    Learn more »
  • Why you should be re-thinking your approach to data protection
    Organisations of all shapes and sizes need a new approach to data protection that addresses the challenges of data growth, but IT budgets are not keeping pace with the escalating costs of supporting storage requirements. This whitepaper explores how securing and retrieving organisational data will need to be done more efficiently.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Latest Jobs
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments