Nine shares down on first day on ASX

nine hqNine Entertainment has made ‘a lacklustre start to life as public company’, according to observers, losing ground in its debut trading session.

Just after Liz Hayes rang the bell at the Australian Securities Exchange building in Sydney on Friday, Nine Entertainment shares opened at $2.02, below their $2.05 issue price.

The stock traded as high as $2.07 after its midday open but ended down seven cents, or 3.4 per cent, at $1.98 -down 3.4 per cent – valuing the group at $1.84 billion and wiping $65 million from its market value.

The initial public offering of Nine – which also owns Ticketek and website publisher Mi9 – brought in about $640 million in new capital.

”We are delighted by the strength of demand received for our IPO across … domestic and international investors,” Nine chief executive David Gyngell said.

“It is satisfying to reach the end of this IPO process with a quality register of investors,” he said yesterday. “There was strong demand through the bookbuild process and the book was multiple times covered at the final price.”

David Gyngell also received a cash bonus of $2.5 million for taking the company to listing and an additional $4.5 million worth of performance rights.

Nine shareholders are said to include Billionaire investor George Soros, local fund managers AMP, Perpetual and Colonial First State.

Source: NineMSN, Herald Sun, SMH

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