Video Dealer Online for flotation

UK online video retailer has unveiled plans to float on the London stock market, undeterred by a slide in internet shares.

BlackStar, which sells videos and DVD Discs by mail order on the internet, said it planned to raise between 50 million and 60 million pounds in new shares in the flotation and to list in the final quarter of the year.

Co-founder Jeremy Glover said the company expected to have a market value between 250m and 300m pounds on listing on the stock exchange.

Mr Glover said the company was not daunted by the recent sharp sell-off in hi-tech shares which culminated on Tuesday with a 13 per cent sell off of the tech-laden Nasdaq index.

The index staged a recovery, but was still down sharply from March highs.

A lot of re-adjustment has taken place in the market in the last month and it’s our view that that’s actually good for the market. We have always taken a long-term view of our market,” he added.

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