Conn – keeping a cautious eye on IPO hopefuls

Simon Conn, Portfolio Manager at Investors Mutual, shares his views on how the IPO market in 2015 has changed compared to a year ago. Conn says that as valuations in the market have crept up, as have the expectations of the vendors looking to list new businesses. “A lot of the companies in the current pipeline are really pricing themselves as if they are already listed. There’s not a discount and there’s not a margin of safety for new investors.” With relatively short track records, aggressive growth forecasts and ‘ritzy’ valuations – Conn says he is taking a cautious approach. With plenty of interest in the Australian Agribusiness sector Conn shares his views on the proposed IPO of the Murray Goulburn Unit Trust. Click the image below to watch the video