Priced to imperfection: vendors could be big losers in conventional raisings..

OnMarket

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)


Comments

Please sign in to comment on this wire.
Medium stamp onmarket rgb

OnMarket

Share the love we say;) It is an approach that does seem to be 'trending' and one that is welcomed by us... moreover this can be leveraged & improved upon through the ASX BookBuild Facility... www.onmarketbookbuilds.com

Medium screen shot 2016 01 12 at 2.25.34 pm

James Marlay

OMB I am seeing more circumstances of brokers collaborating as joint lead managers on capital raisings. It used to be that brokers were pretty loath to give away any allocation but it seems more common for there to be a collaborative approach. Is this an industry approach to opening up demand for primary and secondary market raisings?

Join the conversation