Lastminute ups its float price

Co-founders are the public face of net start-ups

Internet site Lastminute.com has raised its flotation price as demand soars for one of the UK's largest internet share offers.

The new range is 320 pence to 380 pence, up from the original range of 190 pence to 230 pence.

If it is priced in the middle of the new range, the company will be valued at over £500m.

Demand in the grey market - the unofficial share market - is so high that some analysts expect the company to be valued at over £800m when its shares are offered for sale on 14 March.

Private investors who put in applications will be contacted by email and will have to confirm via the website by 1700 GMT on Saturday that they are still interested.

Lastminute frenzy

The company offers flights, holidays and goods over the internet for late impulse buyers.

It is selling 22% of its enlarged capital or 33 million shares and the flotation will be one of the UK's largest for a pure internet company.

Demand for the shares has benefitted from the company's high profile.

Founders Brent Hoberman, 31, and Martha Lane Fox, 27, have become the public face of internet start-ups in the UK during the past year.

The company is not expected to make a profit until 2002 and so far only a small number of registered users have bought from it.

In October to December last year, turnover rose to £409,000 from £119,000 the quarter before.

The site has 1.1 million registered subscribers in Europe.