Barminco seemed to have everything right – solid management, contented customers and a full order book. That wasn’t enough to get its IPO off the ground.
“There are plenty of cheap, beaten-up stocks on the sharemarket already. And they come with a listed track record," a small-caps manager told Financial Review DealBook on Wednesday afternoon, almost perfectly summing up the market’s mood after Barminco was forced to postpone an attempted initial public offering.
Barminco ticked a lot of boxes for fund managers. It had a good management team, strong relationships with customers, a full order book, a long operating history and reasonable market share. But it was not enough to hit the ASX board at the sale price: 10 times expected earnings.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
