I wonder…
A recent IPO that we did not participate in was Monash IVF Group Limited (ASX: MVF). Whilst we appreciate the quality of the business, its staff and management, we believe that it perhaps may be on the expensive side and would prefer to seek more value before proceeding any further.
An anomaly that has been playing out is the subsequent rise in share price of Virtus Health Limited (ASX: VRT) which is almost a carbon copy of MVF itself. We noted as the expectations of MVFs issue price rose, as did the share price of VRT.
MVF listed Thursday at $1.85 and reached a high of $1.97 before falling to its current trading price of $1.83. Virtus today has fallen almost 4.5 per cent. Perhaps it’s a stretch to think that the price of VRT rose on the basis of exuberance in the MVF issue price but one has to wonder…
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
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