qrn ipo, page-12

More important than any political posturings about carbon is the price being asked for the shares. If we take the midpoint of the price range, i.e. $2.75, as the institutional price, then the retail investor price is @2.65 - which represents 17.7 times forecast earnings per share in 2012.

This looks a high PE, and one which is unlikely to hold up in the first few months of trading. It's a puzzle why the Queensland State Treasury would ask such a high price, given that they also want to sell other assets later.

Hard to see the sale getting away at these prices in the current market.

Cheers, Prime