New Zealand’s Mighty River Power’s strong trading debut means there’s a possibility of a strong run of IPOs ahead, reports the Financial Review.
The renewable electricity producer’s shares opened at 9.2 per cent above the offer price, and despite trading softer through the day, they still ended 5.6 per cent up at $NZ2.64 – with the generator valued at $NZ3.67 billion.
“This is a high-quality utility business with low operating costs in New Zealand, with a good balance sheet and good management, so it’s a different proposition,” said Investors Mutual portfolio manager Jason Teh.
Early signs show that the float market may be recovering, but bankers are warning that a failed offering could see the IPO window closed firmly until later in the year.
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