My Food Bag IPO was priced for a completely different market

My Food Bag IPO was priced for a completely different market
Almost 4 million MFB shares had been traded by 4pm, dragging the share price down 8% to $1.70 and wiping $36m off the company’s IPO valuation.
Dan Brunskill
Investors who bought into My Food Bag’s IPO would have been disappointed as they watched the shares sink as much as 10% below the offer price, but they shouldn’t have been surprised.The initial public offer of $1.85 per share was priced for a market that looked very different from the one it landed in today.Ultra-low interest rates are the reason the S&P/NZX 50 Index rose 14% last year, despite a pandemic shutting down much of the world economy for months.After Christmas, there was one last hurrah when the benchmark equity...

More Markets

NZ sharemarket continues sliding, down 0.5%
Markets Market close

NZ sharemarket continues sliding, down 0.5%

The S&P/NZX 50 Index closed at 12,692.72, down 68.47 points or 0.54%.

Spark sells remaining Connexa stake for $314m
Markets

Spark sells remaining Connexa stake for $314m

The sale will result in a $70m gain on telco's books.

Ben Moore 11:45am
Zespri on track for 'moderate increase' in volume next year
Primary Sector

Zespri on track for 'moderate increase' in volume next year

Zespri's producer vote to expand global supply passed this week.

Neal Barclay to exit Meridian as CEO
Markets

Neal Barclay to exit Meridian as CEO

Current CFO Mike Roan will take Barclay's spot atop Meridian.