JPM Initial report..., page-25

"JPM's target is the equivalent of US$2 per ordinary share."


Just to show how laughable this whole investment banking charade is, here we have one of the lead bookrunners, who proudly puts its name on an IPO prospectus that - on its very front page - makes reference to a Proposed Maximum Offer Price of US$2.42 per share.

But then, a month later, once the dust has settled, that firm's analyst comes out with a report that says,

"Nah, sorry, folks. Sure, we were thinking US$2.42 the other day, but on reflection, we now reckon it's only worth $US2 per share."

In other words, we - the investment bankers - are happy to say to everyone (the MSB board, included) that we reckon we will be able to sell the stock to US investors at US$2.42. But what we won't tell you straight away is that we really believe its only worth US$2.00. We'll only publish that little factoid weeks later, when the damage has already been done.


That's like a real estate agent winning your business by saying, "Give me your house to sell and I reckon I could get a million dollars for you."

And then when the best offer for the house ends up being only $700,000, the agent after the sale has gone through turns around and says, "Oh dear. Too bad. Well, I only really value the house at $800,000, anyway..."


The way this IPO has been handled is simply farcical.

And yet you still get people on this forum mindlessly claiming it is a good outcome for MSB and its shareholders.