GQG Partners has done everything that its faithful investors could have asked of it. Yet, they’re nursing a 25 per cent loss.
The biggest float on the Australian sharemarket last year turned out to be a foreign-based company with little affiliation to the nation.raised $1.2 billion of capital for a $6 billion capitalisation,Why did it choose Australia? The official line was that GQG had a natural affinity to Australia given its first major client was a super fund. Also, it would rank higher in the market cap tables, and its listing would lift its profile, aiding fundraising efforts in a large and lucrative market.
But GQGs IPO investors have been punished, rather than rewarded, for this flawless performance. The shares listed at $2 and now trade at $1.50 - a 25 per cent drop.Well GQG timed its IPO at the precise moment that the penny dropped for Australian investors that funds management businesses This historic premium multiple helped the likes of Pendal and Perpetual use their more highly valued scrip to head offshore and buy fund managers to in effect lift earnings growth in a challenged environment.
Janus Henderson is down 40 per cent, Magellan and Platinum about 30 per cent, while Pendal was down by similar amount before takeover talk spurred a rally.
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