The $62.5 million Commonwealth Brewery Limited initial public offering (IPO) will most likely be undersubscribed, but the offer will not be extended further to the general investing public.
The news comes from Michael Anderson, president of the IPO’s placement agent Royal Fidelity, who says that stakeholders will have to wait until at least the close of business on Thursday for the final results of the IPO’s subscription levels. Heading into the last week of the IPO, 60 percent of the offer had been confirmed, but Anderson says that although the final days of the offer demonstrated strong retail interest, some large institutional investors may have had a change of heart.
“I don’t think it will be oversubscribed,” Anderson told Guardian Business yesterday. “To be honest, I think we lost a few large institutional investors.”
This means that the government or one of its agents will subscribe the balance of the IPO. The amount of its investment in the brewer, liquor and other beverage distributor will likely be known shortly.
