Strong demand from global investors. IG gray market saying about $3.50. I also applied for some of these.
Article from The Australian today:
The allocation of shares for MYOB is shaping up to be a strongly fought out battle between local and global investors ahead of the company’s $1.9 billion-plus listing on the Australian sharemarket next month in what will be the largest float so far this year.
Australian institutional investors will meet this week with management and advisers of the accounting software company as part of the domestic leg of its international road show.
On Friday, presentations were held in Hong Kong after the company spent time in New Zealand gauging interest from investors across the Tasman.
After the domestic leg unfolds this week, management will head to the US and Europe to speak to investors over the next fortnight.
US-based investors are thought to be more au fait with investment in the accounting software industry, with dominant players such as Intuit and other software giants listed there.
Sources say feedback about the MYOB float has so far been positive, with the expectation that a number of investors who attended the presentation in Hong Kong on Friday will make orders to acquire shares in the IPO.
Many global investors are underweight with respect to exposure to Australia in their Asia-Pacific investment portfolios.
The falling dollar and strong performance of previous IPO investments in companies over the past year, such as Healthscope and Spotless, means they are eager to snap up more shares in such offerings.
Interestingly, MYOB’s subordinated notes, which already trade on the Australian Securities Exchange, closed at $102.20 on Friday.
Vendor Bain Capital is offering the opportunity for noteholders to buy shares in MYOB at a 2.5 per cent discount to their IPO price and they would be redeemed at $101 plus accrued interest.
It suggests that aspiring investors in the accounting software company were snapping up the hybrids to secure discounted shares in the offer.
MYOB, which sells desktop and cloud business management software to 1.2 million customers, is raising between $831.7 million and $833.8m in the bookbuild for its IPO at the end of the month, including $150m from the notes.
If noteholders do not elect to convert the $150m of debt into equity to participate in the offer, the company would rely on a greater allocation offered to other investors.
Allocations among global and domestic institutions are yet to be determined, but on Friday Bell Potter, UBS and JBWere all bid strongly for the MYOB retail broker offer and would receive two thirds of the shares they bid for.
Last week, trading on IG Group’s grey market had indicated that Melbourne-based MYOB was on course to hit the mid point of its indicative price range, which is between $3 and $4 per share, ahead of its May 4 debut.
