Mobile phone information group, iTouch, which is 70.6 per cent owned by Independent News & Media, has set its initial public offering (IPO) share price at 70p sterling, valuing the group at £200 million (€323.83 million), well below the mooted price range. Dealings in the shares are due to commence on August 2nd.

iTouch was expecting to raise about £70 million sterling (€160.85 million), valuing the company at some £300 million. "In the light of current market conditions", the company said, it is now raising £49 million through the issue of 70 million new ordinary shares.

The chairman, Mr Ivan Fallon, said: "This successful issue allows iTouch to move rapidly forward with its plans and pursue the many business opportunities which are emerging in what is probably the most exciting industry in the world today". The proceeds will be used to "accelerate the further development of iTouch's businesses in South Africa, Ireland, the UK, Australia, New Zealand and Israel", the company said.

Speaking to The Irish Times, Mr Fallon said the original estimate would have given the company sufficient funds for the next three to four years and allowed it enter more markets and make acquisitions. However, it now has sufficient funds for at least two years and "it is full blast ahead for the rest of the year". He noted the "shape of the industry is moving very fast . . . and we are right in the heart of it". Mr Fallon declined to identify the institutions which have taken up the shares.

However, they are mostly London institutions but also include Irish, US and continental European institutions.

iTouch generated sales of £2.1 million last year. It is not expected to move into profits before 2002.