It is not really a difficult pitch — to encourage customers to pay a lower price and get higher service levels," Gilmour told BRW. Apart from its record-breaking valuation, the OzForex float appears to have flouted another IPO convention. Yet all three will completely sell out in the float, while Gilmour and Lord will trim their existing shareholdings of The participants in the IPO appear to be backing OzForex on its fundamentals rather than on any major incentivisation of its vendors.
Roger Montgomery worked with Gary Lord at Bankers Trust in the s, and the funds manager has the utmost respect for him and for the global business which OzForex is building. But this flight of private capital has him feeling a little sceptical. However the funds manager has form for picking value in floats. On the one hand, there is plenty of anecdotal demand for IPOs from investors finally emerging from their term-deposit bunkers as interest rates continue to fall.
Yet as confidence returns to the equity markets, a funds manager who knows something about patience — the second-largest investor in the perpetually troubled Fairfax Media , Simon Marais from Allan Gray Australia — urges investors not to be suckered in by every smooth pitch. Allan Gray has bought into IPOs before, and Marais says there are bargains to be had when market sentiment is down, or where a company is not well known or well followed by the broking community.
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