Given the strength of secondary markets and the widely noted huge volume of liquidity chasing deals, the relatively poor performance of some recent IPOs seems odd.
Some of the biggest and most hotly anticipated deals – such as the IPOs of Kazakh copper miner Kazakhmys, Swiss wealth manager EFG, Belgian cable company Telenet and German speciality fund manager HCI Capital – saw huge volumes of trading on their first day and closed either below or barely above their issue price, despite being substantially oversubscribed.
The reason, say ECM bankers, is the return of speculative interest in IPOs.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
