DGT was a strategic set up, allocate majority of stock to retail investors, cut retail investors allocation, minimize allocation to institutional investors, with the game theory being that institutional investors will have to buy once index funds do, thereby creating significant future demand.
This was the strategic play, and HMC played it very nicely. HMC is out 82% of its position by selling into the IPO, so apart from Brand Damage, financial damage from the IPO is limited (they bought some assets, marked them up, charged alot of fees, and flogged them off, all within a few months).
But the brand damage to HMC over this will be huge. They were too smart by half, and now its going to kick them in the ar****
For the retail investors, those that acted first, have managed to get out with most of their capital intact. Those that hesitated, or now put this 'trade' as an 'investment' and leave it.... welll.....
Just wait until future capital raises occur: how do you think future growth is going to occur????? It's not like these assets are high generating cash machines with long jevity. New capital will be required to invest in upgraded data centres!!!!
DGT Price at posting:
$4.30 Sentiment: None Disclosure: Not Held
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