Just2Clicks, a business to business facility backed by former Cellnet chairman Sir Michael Bett and entrepreneur Luke Johnson, is next week set to float for around £130m.
The issue of 34.6m shares at 150p each was more than twice oversubscribed, and illustrates the growing desire of institutions to invest in internet companies which allow businesses to communicate and trade on-line, not just those selling directly to consumers.
"Since we announced our intention to float in September there has been a sea change in the City's attitude towards business to business," said chief executive Karl Watkin. "We came to the market hoping to raise £20m and have actually raised £50m."
Just2Clicks operates vertical B2B trading portals that serve the pulp and paper, electric power and road transport industries. The new funds will be spent on improving existing services and a likely expansion into the packaging and automotive sectors.
Mr Watkin, who spent 16 years working in the packaging industry, believes the experience and contacts of his board placed Just2Clicks in a strong position to expand into new sectors.
Mr Betts is chairman designate of Pace Micro Technology and has held senior positions at British Telecom and GEC. Non-executive director Alan Donnelly is a former Labour party MEP and finance director of the GMB blue collar union, while Mr Johnson is a renowned networker.
"Our ability to get in front of people is almost unmatched," Mr Watkin claimed.
Revenues come from commissions on transactions and by charging for access to specialised content on websites.
Analysts at Merrill Lynch believe third party sites such as Just2Clicks will account for up to 20% of e-commerce and institutions have been eager to take significant positions in the market.
VerticalNet - a Nasdaq listed company which approximates closely to Just2Clicks - was floated at $16 (£9.90) a share a year ago and now trades at $275.
Just2Clicks also has a partnership agreement with Entrade, another Nasdaq listed B2B firm, to take its goods and services. The relationship could be cemented by the American company taking an equity stake in Just2Clicks.
Mr Watkin will own 11% of the enlarged share capital while the other board members will hold around 2% each.
