It is mixed news at a fascinating time in the history of the company’s.
As Bain Capital’s $1.4 billion position is set to be released from escrow, the bookkeeping software business passed the first hurdle and produced a result in line with analyst consensus amounts.
Trading desks told customers it was enough to support a recent rally.
Fund managers were told by the desk of Deutsche Bank: “Outlook comment consistent with previous direction statements.
Nevertheless, investors were anticipating more, saying it seemed a bit “soft”.
Equities desks and hedge funds are observing commerce carefully, with Bain’s position set to be released from escrow at 4.15pm on Thursday.
Although expectations are it’ll at least consider any offers whether Bain needs to sell is another issue.
The four banks that lined up for the IPO of MYOB last year – UBS, Goldman Sachs, Merrill Lynch and Citi – are anticipated to lead the pitching.
The likes of Deutsche and Macquarie Bank are also not anticipated to be way behind.
It is going to be fascinating to see whether the stock can shake . Bain didn’t sell one share at this past year’s IPO, that has been done at $3.65 a share.
MYOB accounting system traded rather meekly on its introduction, but has rallied in 2013 to be above $4.
For the equities desks, it isn’t the most easy block trade. Agents will be seeking to solicit interest with about 20 per cent of the free float of the stock held. There will probably be some funds seeking to insure the “pain trade”.
The desks should have the ability to develop a novel to take part of the position if nothing else. It is not impossible Bain could sell as much as half and sign a 90-day roughly escrow over its remaining shares.
MYOB reported $178.3 million sales for the six-months ended June 30, above the $174 million consensus predictions.