What a surprise. Strong demand for this one. 2/3 scale back....

What a surprise. Strong demand for this one.  2/3 scale back.

Retail brokers scaled back for MYOB

  <img alt="MYOB chief executive Tim Reed." title="" src="/content/dam/images/1/m/c/f/u/h/image.imgtype.afrArticleLead.620x350.png/1428633973966.jpg" class="lazy620x350"/>
Sarah Thompson
Anthony Macdonald

• Jake Mitchell

MYOB's retail brokers Bell Potter, UBS Wealth Management and JBWere have bid strongly for stock ahead of the $830 million float and their allocations have been scaled back.

It's understood the brokers will receive less than two thirds of what they bid for.

MYOB chief executive Tim Reed and Richard Moore have been well received by retail investors, who were also said to be impressed private equity shareholder Bain Capital was not selling down its stake.

Allocations to retail have been made with a view to achieving an appropriate balance with institutional investors on the share register.

The accounting software giant's listed note holders are able to convert them into the IPO for a 2.5 per cent discount. The MYOB prospectus assumes that about half of the holders would convert, which accounts for about $80 million of the $830 million that is expected to be raised.

The notes are trading at $102.50 - if the holders choose to redeem they get $101 back - which suggests the conversion percentage is likely to be greater than 50 per cent.