2011 Share Floats - What Will 2011 Hold For Investors In IPOs?

With the year now well underway, it's time to turn our attention to what the IPO market might throw our way in 2011. In terms of the number of new issues, last year was an improvement on 2009. Will 2011 be a better year again for investors in Australian share floats?

2010 saw 96 new listings worth a total of $7.5 billion. The monster float of the year was QR National. And despite some investor doubt in the run-up to the QRN share offer, the share price has actually performed fairly well. Shares are trading at $2.80 as I write this, which is a reasonable premium to the $2.45 paid by retail investors. Of course such short term price movement is likely to be driven more by sentiment than by fundamentals. The real test for QR National will be the next couple of years operating results.

MYOB Rejects Private Equity Offer - What's Next?

The MYOB board's rejection of a recent private equity approach is predictable if nothing else. This is how the game is played. Regardless of whether MYOB really is receptive to a private equity deal, the first approach was always going to be denied.

The interesting thing now is the watch how the Australian stock market reacts. The share price jumped today on the news as you would expect but does the market believe that MYOB is up for sale? As I mentioned in MYOB Rejects Private Equity Offer, the company's founder - Craig Winkler - will have the last say in any deal, whether by entering into a partnership or by selling outright.

Taking MYOB private would give the company to pursue more aggressive (read risky) growth strategies than a public structure might allow. Not having the stock market looking over your shoulder gives you more time to concentrate on the task at hand.

I will be following the MYOB private equity approach closely over the next days and weeks.

MYOB Rejects Private Equity Offer

MYOB appears to be the latest target of a private equity deal - something which has been rampant on the Australian stock market in recent times. MYOB has reportedly rejected the private equity approach. The deal is said to be worth $1.90 per share - a premium to the recent share price but a far cry from the heights attained during the heady days of the dot com boom.

From what I understand, MYOB's founder Craig Winkler owns a significant amount of the company - more than enough to block an unfriendly approach from a private equity player. Could it be that he is either willing to take MYOB private again in conjunction with a private equity partner, or would he sell out of the company completely?

For now, the MYOB board have rejected the offer as inadequate.