"Bain Capital’s float of MYOB is off to a thumping start. The accounting software firm looks on course to price at the upper end of its $3 to $4 price range, with five US institutions bidding for close to half the book, although the investors are unlikely to achieve such large-scale allocations.
Despite a volley of accusations about the credibility of MYOB’s client numbers from arch-rival Xero, investor sentiment around the IPO has been consistently bullish.
A well-received roadshow in the US last week rounded off a successful global tour that in Australia drew comparisons with last year’s blockbuster float, Medibank.
Yet while some domestic fund managers have struck a hard line on MYOB’s valuation, vowing to take a disciplined approach to the IPO, the reception from offshore institutional investors has been more amenable. US fund managers view the ASX-hopeful’s valuation of 20.9 to 24.9 times forward earnings as comparatively cheap compared to its US counterparts, Intuit and Adobe.
The steady appetite is expected to drive MYOB’s valuation to above $3.60 by this morning with the deal predicted to close at between $3.70 and $3.80.
IG Group’s closely watched grey market on the stock, which starts trading on the Australian stock exchange on May 4, closed yesterday at $3.74."
Will be interesting to Eee what happens on Monday and even more interesting in a years time
