Satellite communications firm makes lacklustre debut on Nasdaq

Shares of satellite mobile phone company, ICO Global Communications, failed to perform as expected on their first day of trading on Nasdaq.

The company, due to start its service next month, floated shares at $12 each, but prices only rose by one eighth of a dollar by the end of the day.

Last week's satellite failure at rival operator, Iridium, is being blamed for lowering confidence in the stock.

However, Olof Lundberg, chief executive at ICO, took a more optimistic view, saying its first day of trading was a "major achievement". He claimed it will help to secure the company's financial future.

ICO is currently developing a range of satellite and ground systems to allow local companies to offer mobile phone, data and fax services to worldwide customers.

The company claimed a full range of services will be launched in 2000. ICO handsets will offer connection with cellular and PCS as well as satellite networks.

The firm's initial public offering of ordinary shares was valued at $120m.