Hunter Hall float oversubscribed.
Ethical fund manager Hunter Hall has hit the market running with its stock opening at $1.20, well above its list price of 90 cents, after listing at midday today.
The group closed off its subscription to the float on February 16 which was oversubscribed to the tune of $10.4 million, easily beating the target of $4.5 million.
Up to five million shares were available in the float and according to the company there were 1000 applications for shares in the group with the majority coming from investors, advisers and entities linked to the company.
At the time of the float opening Hunter Hall said it would give preferential treatment in allotting shares to these groups as well as to any staff who applied for shares.
Based on the price of 90 cents per share the float values the group at $21.1 million with Hunter Hall saying the capital raised will be used to grow funds under management as well as spread ownership of the company to staff, distribution partners and investors.
Hunter Hall chairman Peter Hall says the response to the float offer was good considering the poor performances of other initial public offerings (IPO) within the financial services market recently.
"In a period when the Australian sharemarket has been relatively flat and there have been a number of unsuccessful or withdrawn IPO's, the fact that our company's float has been oversubscribed by greater than 100 per cent is pleasing, especially since it has not been underwritten," Hall says.
AUTHOR
Jason Spits
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