Aussie fund manager launches IPO

Platinum Asset Management, an Australian fund manager popular with many New Zealand advisers, is seeking to raise A$561 million ($636 million) in an IPO.

Thursday, April 12th 2007, 7:10AM
Platinum, which is controlled by Kerr Neilson, manages A$22.2 billion in international shares.

The offer documents, filed Tuesday, show that Platinum is offering 112.2 million shares at A$5 each.

Its contrarian value style of investing has delivered strong performance since inception, but Platinum has had times where it has under-performed, especially when markets are running hot.

Its flagship Platinum International Fund has returned 17.4% a year in the 11 years ended 2006, compared with an 8.1% gain in the MSCI World Index.

Platinum is generally credited with managing recent major investment events well and recognising trends early.

It survived the late 1990s Asian monetary crisis and the tech bubble. Neilson says they picked the rise of China after the Asian economic crisis, the rise of India and the subsequent global commodities boom well before they had claimed centre stage.

"The reason for listing is to allow staff to realise a small part of their interest," Kerr Neilson says.

Platinum forecasts net income of A$167 million in the year ending June 30, pricing the share sale at 17.6 times estimated earnings.

The offer opens next Tuesday and the firm is scheduled to begin trading on the Australian Stock Exchange on May 23.

« PAA members upbeat on LBA mergerSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

www.GoodReturns.co.nz

© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved