As was expected by few of us, It has bitten the dust. If they reprice it to say 12 to 13 times Forecast, it might do a Mantra! Greenstone IPO pulled
Greenstone is the first float of size to be pulled in Australia this year.
Greenstone is the first float of size to be pulled in Australia this year. Peter Braig
by Sarah Thompson Anthony Macdonald Jake Mitchell
Greenstone's owners Hollard Insurance and Gavin Donnelly have pulled the company's $900 million initial public offering after a worse than
expected hearing from domestic fund managers, as foreshadowed by Street Talk.
Greenstone and its advisers opted to pull the float on Tuesday night as retail brokers were finalising orders for the broker firm offer.
Sources said the float was postponed "indefinitely".
It's understood the owners were not willing to entertain any bids below the bottom of the IPO price range of 15.5-times forecast profit.
It's the first float of size to be pulled in Australia this year. It's also likely to raise questions about the IPO window as others
including Amaysim and Pepper prepare for listings of their own.
The softening IPO market coincides with a falling share market. However, domestic fund managers have been sceptical about Greenstone
for weeks, raising questions about the insurance seller's accounting, proposed payments to vending shareholders and projected growth.
