The comically named payment group Eurowag flirted in tragedy when stock trading began on Friday in London. Investors facing an energy crisis, rising inflation and rising political tensions will always be in a tough crowd.
Initial public offering of Eurowag The stock price was 150p, one day behind schedule, 25p below the lower limit of the initial range. When the deal began, stock prices fell another tenth. It valued the company at just over £ 900m, more than half of the original £ 1.7bn.
Eurowag emphasizes the risk of going an IPO when market sentiment becomes negative. We have achieved our goal of raising € 200 million in new funding to fund growth. You may have decided to sign a contract. That’s what Icade Santé announced this week. The French healthcare real estate group has postponed the IPO until the market improves. Fitness group iFit also canceled this week in the United States for similar reasons. The tendency of sellers to leave usually indicates who is the winner of the IPO.
Eurowag shareholders want them to have a bargain. The IPO price for 150p was a multiple of 18 times that of ebitda in 2022. US peers such as Shift4 and Paya trade in their mid to late twenties. But even if Eurowag shares are currently trading nearly 16 times, investors need to be careful. This business is a very periodic payment play for fuel sales to European shipping companies.
Research shows that IPO buyers are often losers in the long run. Trading in the London market this year does not help that image. Of the 15 IPOs that raised over £ 150m this year, seven are trading below the offer price by an average of 23%. Underperformers include the largest Deliveroo of the year. Dr. Martens is bullying on the verge of falling below the initial rating.
The best performing Darktrace has risen by more than 200% to meet the trend of punchy technology evaluation. Like other top-performing IPOs of the year, it’s an unprofitable tech business.
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