- BRW Lists
Published 17 December 2013 15:43, Updated 19 December 2013 07:47
Raphael Geminder’s float hasn’t got off to a great start. Paul Rovere
Shares in plastic packaging manufacturer Pact Group Holdings have made an underwhelming debut on the Australian Securities Exchange on Tuesday, with the stock immediately dropping below its $3.80 issue price.
The shares opened at $3.50 and ended the day at $3.32, down more than 12 per cent on the issue price.
The float continues the trend of disappointing ASX debuts in recent weeks, with both Nine Entertainment Co and Dick Smith trading below their issues prices.
Pact raised $649 million from investors through the offer of 170.7 million shares at pre-float, with chairman Raphael “Ruffy” Geminder maintaining a 40 per cent stake in the company.
Geminder said he was “pleased with the support we’ve received from investors and the market, making Pact the largest IPO of the year” and said it was not “productive to focus on short-term market volatility.”
“We are in this business for long term growth,” he said. “This is a practical business full of real infrastructure – we manufacture real things that consumers interact with in their day to day lives. I think that scale and a defensive business model are certainly positives in a volatile world.”
Listing documents released to the ASX on Tuesday revealed that most of the top 20 shareholder list was institutional investors, including AMP.
Sydney businessman Gary Wolman also emerged as a large shareholder with about 6.3 million shares as part of a deal whereby Pact will acquire his Cinqplast Plastop Australia business and a share in a manufacturing plant in the Philippines.
Mr Geminder told the Australian Financial Review earlier this week that he was “cautiously optimistic” Pact shares would perform well upon hitting the ASX, and that the company should be judged differently from other recent technology or media floats.
“I look at some of these recent floats and say, a bit tongue in cheek, that we are a real business that actually makes things,” he said. “We’re not like these tech companies or some of these private equity exits. We are a very established and sound business.”