“A good company at the wrong price…” is how Stefano Girola, a portfolio manager at Alicanto Capital SGR in Milan, is describing the plunge in Nexi SpA after its IPO – the biggest in Europe in 2019 – collapsed from the open.
As Bloomberg reports, a mix of existing and new shares in the payment services specialist had been sold to more than 340 investors from around the world at 9 euros each… but things were not good from the start as the company opened below that IPO price and kept sliding…
The Nexi IPO is the largest in Europe since German brake maker Knorr-Bremse AG’s 3.8 billion-euro share listing in October. It is also the biggest in Milan since Pirelli & C. SpA returned to the market in 2017.
“The Nexi IPO is a source of pride for the country,” CEO Paolo Bertoluzzo said during an opening ceremony at the Milan exchange.
“The share price should be viewed over time, this is only day one.”
But, as Alicanto’s Girola warns,
“I am not particularly surprised by the negative performance of Nexi, which in my view was wrongly priced on expectations that rarity value would have boosted demand.”
All of which is rather odd since CNBC’s Bob Pisani proclaimed that the dismal post-IPO performance of LYFT was a “one-off.”
via ZeroHedge News http://bit.ly/2V2LQ5O Tyler Durden