global-ethanol-stumbles-and-delays-listing

Global Ethanol stumbles and delays listing

Lead managers Morgan Stanley and UBS rethink their strategy for the Australian-based alternative fuel producer after investors baulk at the price.
August 10, 2006
The FedÆs decision to hold rates and oil prices at a record high, were not enough to get the IPO of Brisbane-based Global Ethanol off the ground on Thursday.

Investors found the A$4.60 to A$5.80 per share price tag too rich forcing the issuer to delay the A$500 million capital raising after a two-day institutional bookbuild.

Since Global Ethanol produces and sells 100% of its fuel offshore, lead arrangers Morgan Stanley and UBS were expecting to place the bulk of the shares with foreign institutions. But that wasnÆt to happen.

ôWe saw good interest yesterday in Australia and Asia and this carried through early in the US but then momentum slowed. People were jittery about...
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