Blame game: 19 reasons people give for why the Misys IPO failed
The IPO of software company Misys was cancelled on October 27 after a tough period for UK IPOs and amid a challenging market backdrop. But why do bankers think the deal failed?
Below are the 19 reasons, in no particular order, they gave in various discussions with Euromoney during the past week. And here is the full story.
1) The equity story: Buy side didn’t buy it
2) Reporting currency: I’m confused. What exactly was the revenue growth then?
3) Syndicate structure: Too many glo-cos, not enough control
4) Timeframe: A summer mandate and a US election deadline? Never going to happen
5) Market conditions 1: Macro jitters — rates, inflation, growth
6) Market conditions 2: Other deals trading badly
7) Time of the year: Active investors are suffering, not much time left to find alpha
8) Valuation: Seller looked at Temenos, but market looked at Sage
9) Shifting sands: Deal smaller than I thought, less interested now
10) Been listed before: What’s changed to justify new valuation?
11) Seeing the word “punchy” in investor feedback
12) Brexit: obviously
13) US election: obviously
14) PE shareholder paying itself? Hmm
15) Client sector: Shaky outlook
16) Issuer sector: Banking software. Nuff said
17) Noise, fanfare: Too much pre-deal
18) Book quality: Not enough anchors, too much fluff?
19) Early look premarketing: only one round, not two