Hot offerings get the cold shoulder

As the year draws to a close, investors are opting for stable cash flows and solid valuations over "hopes and dreams" fund-raising campaigns.

Retail investors have shunned Virgin’s offer, with only a quarter of eligible shareholders taking up their entitlement. The much talked about Nine Entertainment initial public offering has slipped close to 10 per cent in only five days of trade.

As the year draws to a close, unexpected responses to recent events in some stocks suggest investor preference is for stable cash flows and solid valuations over the hopes and dreams a company sells investors in a fund-raising campaign.


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