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

Fri, 05 Mar 2021

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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