Priced to imperfection: vendors could be big losers in conventional raisings..
Priced to imperfection: vendors could be big losers in conventional raisings... Andrew Main discusses this morning in The Australian 'shortchanging vendors in a big way'...while while more than $1.77 billion has been raised in initial public offerings since the recent wave started with health provider Virtus in June, there has been a gross $329 million left on the table in terms of profit forgone by vendors selling too cheap. His view is that sharp price rises on an issue are a case of pricing mismatch, and that they've been common, with nine out of 10 issues putting prospectus subscribers ahead in the first month's trading. The 10th, iSelect, has had travails of its own after listing at $1.85 and seeing its shares drop back to the $1.25 level ...(VIEW LINK)
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