From BS:
Shares in Genworth Mortgage Insurance Australia surged 11 per cent on their first day of trading on the ASX following an initial public offering that raised $583 million.
At 12.07 PM AEST, Genworth Australia shares were up 28 cents to $2.925, according to ASX data.
Last Thursday, Genworth Australia sold 220 million at $2.65 each in what was the biggest Australian IPO of 2014. IPO issuance in Australia this year has dropped slightly compared to 2013.
And the AFR this morning:
Sceptics of Australia’s housing boom will likely be some of the investors eager to short-sell lenders’ mortgage insurer Genworth, after its initial public offering debut on the Australian Securities Exchange on Tuesday.
That is the view of analysts and fund managers who point to the insurance giant as a stock that would capture the attention of investors bearish of the Australian housing market’s expensive valuations.
“Previously the bears in the housing market were shorting the banks,” CLSA analyst Jan van der Schalk said. “Given the banks are ceding their worst risks to Genworth, this is an even more logical short.”
Correct. The question is timing as always.
