Money managers under the microscope
Clarity is in short supply today when it comes to IPOs. Two companies filed for inital public offerings worth $100 million and $300 million on Monday, underscoring an impression of investors growing more comfortable with companies they may have deemed too risky in 2009.
Following the upbeat tone is aluminum giant UC RUSAL securing some heavy-weight investors --a member of the Rothschild family as well as one of southeast Asia's richest men-- in an IPO now bumped up in value to possibly $27 billion.
But wait, not all is rosy. A top China train maker, CNR, limped in its market debut after its $2 billion IPO in Shanghai. Valued at 49 times its 2008 earnings, investors tolerance was tested and the stock closed up a weaker-than-expected 2.34 percent.
"The weak debut is actually good for the market as it sends a warning for future IPOs, forcing companies to think twice before they set sky-high IPO prices," said Chen Huiqin, senior stock analyst at Huatai Securities in Nanjing.