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The Warren Buffett question at the heart of Guzman y Gomez float

Morningstar is the first to initiate coverage on the Mexican fast-food chain and has whacked a valuation of $15 a share on the company, far less than the $22 that the stock will be valued at under the IPO.

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A subsidiary of the US market operator Nasdaq has started to explore the idea of private IPOs, which would give venture capital and private equity firms a way to auction stakes in their portfolio without taking them through the long process of a public market float.

The idea is fascinating, and reflects the rise and rise of private capital – that is, companies simply don’t need to tap capital markets in ways they once did – and the fact that the IPO window remains mainly shut around the world.

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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com

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    Original URL: https://www.afr.com/chanticleer/the-warren-buffett-question-at-the-heart-of-guzman-y-gomez-float-20240612-p5jl35