STX sails into perfect storm

Korean shipper prices IPO below the bottom end of the indicative range.

Korean shipping company STX Pan Ocean, priced its IPO on Friday July 8 in what can only be described as awful conditions. The first Korean company to list in Singapore not only faced poor sentiment on the sector and falling shipping rates, but also the impact of the London terrorist bombings, which all but erased European demand. In the event, the deal was priced some way through the bottom of the range S$0.96 at S$0.90.

This was always going to be a tough deal to do. Investors had watched as China Cosco's IPO priced at the bottom end of its range and then declined 10% on its first day of trading....

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