Posted by: qmaxim | December 24, 2007

DP world IPO

DPW IPO is quoted below issue price.

Reasons not clear.
News people may be thinking on this lines:
Proabably was not really oversubscribed to the extent claimed
Allocation mechanism is unclear.
Possible Dhs > USD exchange rate change

Consequences I can guess..
Will become difficult for other companies to go to market
Will become difficult for DPW to approach market again.
Short term speculators would have been burned badly

I will be pleased to hear your views

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