donnie
08-04-2006, 02:37 PM
Should see some good interest in Dyno Nobel over the next few weeks.
It just listed on friday.
Dyno Nobel blasts off as Big Air stalls
Email Print Normal font Large font By Ian Porter
April 8, 2006
THE float of the world's second-largest explosives maker, Dyno Nobel, lit a fuse under the rock-breaking sector, initiating a flurry of buying in both its shares and those of the market leader, Orica.
The surge of interest from investors lifted Dyno shares far above their issue price on Friday while Orica powered ahead to a share price record during the day.
The performance of the two companies defied a weakening trend across the market, which ended the day down a fraction from Thursday's record.
By the end of trade, Dyno had jumped from its issue price of $2.37 a share to close at $2.68, an impressive 13 per cent gain.
Orica also received sustained buying support, its share price gaining 44c or 1.8 per cent to $24.74, off an intraday high of $25.08.
Investors were keen to use the companies as a way into the mining and resources boom, which has powered the market's bull run.
In contrast to Dyno's debut, telecommunications provider Big Air closed steady with its 25c issue price on Friday after opening at 28.5c. The Big Air float raised $10 million for the company, which will promote use of wireless broadband and voiceover internet communications for corporate customers. But the days when a telco could excite the market may be over.
The surge in Dyno's share price pushed its market capitalisation to $2.16 billion, just short of breaking into the top 100 listed companies. A rise of a further few cents would allow it to consolidate a position in the top 100, which would mean index-linked investment funds would then have to top up.
Dyno's stellar debut came after strong demand for shares in the float forced the managers to scale back institutional and retail investor allocations. They were also able to take the unusual step of setting an issue price higher than the initial indicative range of $1.89 to $2.27.
A number of positive factors improved the outlook for Dyno during the float process, not least that the sharemarket was setting records almost every day.
In addition, the Australian dollar weakened against the US dollar, which will result in higher profits for Dyno when they are exchanged into local currency. Demand for Dyno shares was also assisted by a strong rise in the Orica share price during the float process.
The 44c added to Orica's share price on Friday brought its gains for the week to 6 per cent and swelled the company's market capitalisation to $7.59 billion.
In addition to having a larger explosives operation than Dyno, Orica is a major fertiliser producer through its 70 per cent stake in Incitec Pivot and is Australia's largest water purification and food additives company.
Orica leaped from second to first place in the world explosives market last year when it acquired much of Dyno's operations.
It just listed on friday.
Dyno Nobel blasts off as Big Air stalls
Email Print Normal font Large font By Ian Porter
April 8, 2006
THE float of the world's second-largest explosives maker, Dyno Nobel, lit a fuse under the rock-breaking sector, initiating a flurry of buying in both its shares and those of the market leader, Orica.
The surge of interest from investors lifted Dyno shares far above their issue price on Friday while Orica powered ahead to a share price record during the day.
The performance of the two companies defied a weakening trend across the market, which ended the day down a fraction from Thursday's record.
By the end of trade, Dyno had jumped from its issue price of $2.37 a share to close at $2.68, an impressive 13 per cent gain.
Orica also received sustained buying support, its share price gaining 44c or 1.8 per cent to $24.74, off an intraday high of $25.08.
Investors were keen to use the companies as a way into the mining and resources boom, which has powered the market's bull run.
In contrast to Dyno's debut, telecommunications provider Big Air closed steady with its 25c issue price on Friday after opening at 28.5c. The Big Air float raised $10 million for the company, which will promote use of wireless broadband and voiceover internet communications for corporate customers. But the days when a telco could excite the market may be over.
The surge in Dyno's share price pushed its market capitalisation to $2.16 billion, just short of breaking into the top 100 listed companies. A rise of a further few cents would allow it to consolidate a position in the top 100, which would mean index-linked investment funds would then have to top up.
Dyno's stellar debut came after strong demand for shares in the float forced the managers to scale back institutional and retail investor allocations. They were also able to take the unusual step of setting an issue price higher than the initial indicative range of $1.89 to $2.27.
A number of positive factors improved the outlook for Dyno during the float process, not least that the sharemarket was setting records almost every day.
In addition, the Australian dollar weakened against the US dollar, which will result in higher profits for Dyno when they are exchanged into local currency. Demand for Dyno shares was also assisted by a strong rise in the Orica share price during the float process.
The 44c added to Orica's share price on Friday brought its gains for the week to 6 per cent and swelled the company's market capitalisation to $7.59 billion.
In addition to having a larger explosives operation than Dyno, Orica is a major fertiliser producer through its 70 per cent stake in Incitec Pivot and is Australia's largest water purification and food additives company.
Orica leaped from second to first place in the world explosives market last year when it acquired much of Dyno's operations.