GREY:HRIVF - Post by User
Post by
Power1on Feb 16, 2011 7:44am
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Post# 18141382
Article extract
Article extract
Thought the comments were quite fitting. I'm sure most may have already read it. Full story here:
https://www.reuters.com/article/2011/02/11/us-russia-ipos-idUSTRE71A4JG20110211
"It is still not a bad time for public offersif the deal is well priced and the story is good," said KahaKiknavelidze, Managing Partner of emerging markets fund manager RioniCapital.
"Investors are demandingadditional discounts for small cap or relatively less transparent orsecond-tier IPOs such as Nord Gold and Chelpipe," he said.
Themiddle of Nord's offer price range valued its equity and debt at justover 8 times forecast 2011 EBITDA, a premium to peers like AfricanBarrick Gold (ABGL.L) and Petropavlovsk (POG.L), which trade around 6.5 times 2011 EBITDA estimates.
Sourcesclose to the Russian offerings say the firms were stubborn onvaluation, and reluctant to listen to feedback from investors. Wherethis gap in expectations can be overcome, other Russian issuers couldstill succeed.