Been thinking about this ASIC crackdown on brokers in relation to the failed iCobalt spin-off. Apparently brokers have been allocating shares to themselves and their employees in order to make money from trading. Could that be why MTC shareholders were barely allowed to participate in spinning off what appears to be dud cobalt tenements, and were offered no discounts or in-specie shares? IPO's on average gained over 11% on the first day of trading, so could iCobalt allocations have been geared to a tightly controlled plan for trading? The whole structure of it seemed off to me, then there were those false claims in advertising emails from Hot Copper regarding in-specie distro etc, which came from brokers, it was getting quite a bit of hype. Why hype it in advance unless you were expecting to have a decent allocation of shares to sell for a profit on market once it was floated? Our Directors would have received directors fees from sitting on the new board, and fat profits could have been made from dumping the shares for a profit. Seems like very poor advice was received to me, the debacle had a very detrimental affect on sentiment for this company.
Australian Securities and Investments Commission pledges harsher IPO, raising penalties
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