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...

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