McGee makes market hit

Alan McGee is looking for his next oasis

The rock music mogul who gave Oasis their first recording deal, Alan McGee, has seen his new record label get off to a bright stock market debut.

Shares in the label, Poptones, rose 50% in the first hour of trading to put a value on the company of £17m.

Fed up with being part of the corporate puzzle

Why Alan McGee quit Creation

Poptones' shares were listed on the London Stock Exchange's Alternative Investment Market.

The increased worth of the company means that the 39% stake Mr McGee has retained is worth £6.8m.

The £2m or so raised from the offering will go towards signing up new bands, one of Mr McGee's claims to fame in the past.

His discoveries include Oasis, Primal Scream, the Boo Radleys, My Bloody Valentine and the Jesus And Mary Chain.

The 39-year-old left the label he founded, Creation Records, earlier this year, 17 years after he set it up with a £1,000 bank loan.

Going back to his roots

He sold 49% of Creation to Sony in 1992, but after Oasis hit worldwide fame later that decade, he grew "fed up with being part of the corporate puzzle".

The desire to set up a new label was fuelled by Mr McGee's desire to get "back into the fray".

Poptones will use the internet to distribute music and will aim to undercut the record industry by selling compact discs for £9.99 each, roughly £5 cheaper than the normal retail prices.

Mr McGee may also float other parts of Poptones in the future, and the money raised will be used to finance other interests, such as setting up an art gallery or a nightclub.

Despite his dislike for "the corporate puzzle", he has signed a Japanese licensing deal with Sony for Poptones, but he said it would not compromise the independence of the company.