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1.IPO results, 1.Market Observations

24 Mar 2016 (AFR) – How the roof caved in on McGrath float – Blue-chip real estate brand McGrath turns into sharemarket flop

(24 March 2016, AFR, p66, by Larry Schlesinger)

‘With a blue-chip real estate brand, a leading position in Sydney’s affluent harbourside markets and the guru-like status of its charismatic founder, there were many reasons to believe the float of McGrath Limited (ASX:MEA) would be a huge success. Indeed, institutional investors heavily backed the $130 million float and were reportedly eager to tip in much more, even though the housing market, particularly in Sydney, was clearly starting to flag. Like a lead weight, McGrath Limited sunk on its first day of floating – falling 12 per cent from its $2.10 offer price and tumbling further over the coming months, even as the company delivered solid interim results in line with its prospectus, and announced its first Melbourne office acquisitions.’

Read more (and see the share price graph) at AFR.com (might need AFR login access, or try: AFR.com/trial)

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