Meyer IPO

[winner69]

The circus about to roll into town ...

Meyer has been so successful over the last year or so that future growth is assured. Not often you get the chance to get a piece of a growth retailer is it.

We've made heaps already out of this dog by sacking 5000 staff and having plenty of sales .... but we have repositioned the business that guarantees future growth

Going cheap .... cheap as .... only $3 billion

Roll on up to the big tent ... tickets on sale now

[Dr_Who]

You getting any Winner?

[macduffy]

I'm hearing the usual negative noises about availability for NZ investors and notice that one can't pre-register for Myer cardholder preference with an NZ address.

I'm not particularly put out though. There's plenty of other interesting situations in the Aussie market at present although I don't underestimate the strong position that Myer has in Aust retailing and in the psyche of Aussie consumers.

[contrarianinvestor]

Why would existing shareholders who are smart business people sell out at bargain prices to public shareholders? IPO = It's Probably Overpriced. Here is an extract directly from The Intelligent Investor by Benjamin Graham: "An elementary requirement for the intelligent investor is an ability to resist the blandishments of salesmen offering new common stock issues . . .For every dollar you make in this way you will be lucky if you end up by losing only two".

[POSSUM THE CAT]

Is this another FELTEX snow job

[macduffy]

Well, all listed companies started out as IPO's at some stage although I agree that we need to be especially sceptical of those promoted and sold by private equity funds.

But I'm still kicking myself for turning down CBA all those years ago. The prospectus was available, in the street like real estate brochures! outside CBA branches in Aust. Another extraordinarily successful IPO which was widely available was WOW.

There may be valid reasons why a private equity fund sells out, or at least down. It may have to do with inadequate funds for expansion or just a case of moving on to something else. But caveat emptor always.

;)

[steve fleming]

There may be valid reasons why a private equity fund sells out, or at least down. It may have to do with inadequate funds for expansion or just a case of moving on to something else. But caveat emptor always.

;)

Most investors in a PE fund have the option to redeem their investment after say five years, or in some instances, with closed end PE funds, the fund is wound up after 5 - 7 years.

In any event, to manage this, PE funds have to maintain reasonable mid-term liquidity in their funds, which results in a short term investment horizon. Everything such as financing, employee contracts, management agreements have this short term focus.

From the point of view of TPG, they have done their job with Myer, it has been an exceptional investment for them and it's now time to reward their own investors and distribute the proceeds back to them then move on to the next thing.

[Huang Chung]

Agree Steve, holding investments for the long term is not the way Private Equity Funds work.

At this stage of the cycle, I'd suspect that there will be good returns to be made for the new owners of Myer over the coming years, assuming the IPO is priced reasonably.

Looking forward to getting hold of the Prospectus.

[steve fleming]

Agree Steve, holding investments for the long term is not the way Private Equity Funds work.

At this stage of the cycle, I'd suspect that there will be good returns to be made for the new owners of Myer over the coming years, assuming the IPO is priced reasonably.

Looking forward to getting hold of the Prospectus.

Yes, it should be in a good position to take advantage of recovering consumer confidence, though rising interest rates and the end to the stimulus payments will be a risk.

Not really my cup of tea, however, you only have to look at how JB Hi-fi has performed after they were IPO'd by Next Capital after 3 years of PE ownerhsip as a successful retail PE IPO...there have been some real horrors though - Pac Brands, Boart Longyer, Emeco, Vision...

The TPG consortium invested in Myer have already recovered their initial $500m investment in 3 years, as a result of dividends and asset sales, so the proceeds from the IPO will be cream to them....

[Dr_Who]

I would like to see how this is priced before I make a decision.

If this IPO is any good NZers will get nothing or 2% of what we ask for. If it is a crap IPO NZers will get all the stocks we ask for.

Those Aussies are smart cookies... where the bloody hell are ya?

[Huang Chung]

If this IPO is any good NZers will get nothing or 2% of what we ask for. If it is a crap IPO NZers will get all the stocks we ask for.


Sounds reasonable to me Doc....:D

[Joshuatree]

W69 did you misspell the header on purpose?Meyer is of course one of our LEMON tree varieties.