Reliance scaled back

Investors are betting the plumbing manufacturer Reliance Worldwide could trade as high as $3 per share when it debuts on the ASX today after this week’s bookbuild attracted an avalanche of support.

As first flagged by DataRoom, the deal priced at $2.50 per share, the peak of its 18-22 times forward valuation range.

But after investors were forced to stomach heavy scalebacks on a $912m raise, expectations of a strong debut are running high.

One fund manager pointed out the first week on large, keenly-bid deals like this are typically about liquidity and positioning rather than valuation.

Yet while some fund managers are counting on a sharp rise in the stock, others claim the high number of smaller investors in the book, who failed to receive their target allocations, are likely to trade out within the first few days.

Motorcycle Holdings will also make its ASX debut today. The IPO, handled by Morgans, received overwhelming support from retail investors.