emeco-prices-low-in-tough-market-conditions

Emeco prices low in tough market conditions

The Australian earth-moving company faces a difficult first day of trading today after fixing the price almost 20% below mid-range expectations.
Support from foreign investors has helped Emeco limp across the line in a badly timed IPO that caught investors on the back foot.

The IPO hit trouble when the close of the institutional bookbuilding coincided with the release of the countryÆs worst inflation figures in five years.

The prospect of higher interest rates meant that domestic institutions were more cautious when placing orders for Emeco shares, setting a price of A$1.90 per share compared to the range of A$2.10 and A$2.50 stated in the prospectus.

At the end of the two-day bookbuild on Wednesday there was speculation that not enough orders had been received from local buyers to fully cover the deal.

But overnight, joint...
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