The much awaited QR National share offer looks like it will definitely go ahead now with the company seeking pre-registrations from interested retail shareholders right now.
While pricing information is not yet availale, the Syndey Morning Herald has reported that the lead managers of the float are looking for a price to earnings ratio of 16 times. While this doesn’t seem to be a screaming bargain, I suspect the eventual price will probably depend largely on the strength of the Australian and world stock markets in the coming weeks.
Another factor at play is the negative sentiment generated by the Queensland opposition leader and the union movement. Comparisons with the Telstra float and the more recent and even less successful Brisconnections share sale will undoubtedly strike a chord with some investors. However QR CEO, Lance Hockridge, disputes the validity of these comparisons. Mr Hockridge cites strong growth opportunities on the back of the resources boom. Time will tell.
QR National is due to make its debut on the ASX on December 1.
