ASX Listing Code MYR - Myer Float Listing Opening Share Price
I recently voiced my opinion on the share float of Myer, suggesting that the price offered was way too high. As i said at the time, "So why is Myer such a bad choice for a long term investment? In one simple word, Myer is overpriced."
It seems that the market agrees. The price for Myer shares purchased as part of the plan was $4.10. The initial opening price on the stock exchange was $3.88.
I will admit that when i wrote that piece, i expected the retail offer to value the shares at the upper end of the price range of between $3.90 and $4.90. And i also expected the shares to list at a premium.
But since then, the market has taken a bit of a nose dive. And the more the institutions looked at the Myer offer, the less they liked.
Then of course, the listing for Myer comes on the day after the Dow Jones had its largest fall for months. Yes, the jitters have arrived on the market.
That's not bad news for the private equity firms TPG and Blum Caiptal. They have made a killing on their sale of Myer, as have the Myer family. Good for them.
Not so good for the mums and dads out there who bought into Myer as a long term investment. Sorry folks, this one's a stinker. Just my opinion of course.
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