It looks like vendors from last year’s listings will be stuck with their blocks longer than expected, as the IPO class of 2021 struggle to beat their offer prices.
Only two companies were trading above their IPO price: Australian Clinical Labs and Ventia Services Group.
In years gone by, reporting season doubles as block season, with equities desks bidding for newly unburdened stakes and selling the shares to fund managers.No vendor is going to want to sell for less than the IPO price, unless forced to do so. Trading desks will have their fingers crossed that the 2021 IPO crop can at least meet or beat their prospectus forecasts, to try to improve sentiment and create the chance for selldowns in coming months.
“At this point in the cycle, there’s decent liquidity in the market but investors [buyers] may require a wider discount. Which also raises the question of whether or not potential acquirers – private equity firms or strategics – would step in. They can liaise directly with the block candidate and pay a premium, to get an immediate foothold from a strategic point of view.”, where Crescent Capital and its co-investors jettisoned a $130 million parcel on Friday night via Goldman Sachs.
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