British medical firm ConvaTec has raised nearly 1.5 million pounds in an Initial Public Offering (IPO) has reducing the price of its shares to the very bottom of the initial price range.
British medical products firm ConvaTec has raised nearly 1.5 million pounds in an IPO after reducing the price of its shares to 225 pence per share, far lower than the initial price range it had listed. According to an anonymous source the books for the offering ere substantially oversubscribed however it was not specified by how were they oversubscribed. Bankers have also scaled back their allocations.
ConvaTec has said that it total market capitalization would rise after the IPO to 4.39 billion pounds and that it would be admitted to London Stock Exchange’s main market after a period of conditional trading.
ConvaTec’s reducing of the price per share during it IPO is the latest in a series of share-price reductions or canceling of offering companies listed in London were forced to make. Earlier this month waste management company Biffa had to price its IPO at a lower than expected level while PureGym and German real estate company OfficeFirst had to withdraw their IPO.
According to bankers, investors have become particularly price sensitive regarding share prices after Danish debit card company Nets’ IPO was several times oversubscribed and priced towards the upper end of its range, only to consistently trade below its offer price afterwards.