CITY AT WAR
A NEW poll of market players shows ongoing mistrust between the various parties involved in listing companies.
The survey of 100 market participants in Europe showed particularly strained relations when it comes to bookbuilding, the behaviour of asset managers when taking stock in new issues and the role of independent advisers, according to Financial News.
The poll confirms a City A.M. investigation that revealed widespread discord among those bringing companies to the London market.
Ninety five per cent of respondents to the survey said they either did not trust what bookrunners told them about demand during a float or would prefer more transparency.
More than four in ten said the prices set for IPOs were inconsistent, and a further 34 per cent said the initially IPO prices were too high, forcing them to be cut before the float.
Over 70 per cent of respondents to a bookrunner survey said independent advisers were damaging to investors. Just over 60 per cent called on regulators to intervene for the sake of market transparency.