A market valuation for Optus pre-listing: a case note

Walker, S; Partington, G

A market valuation for Optus pre-listing: a case note

Walker, S

Partington, G

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Publisher:: Royal Melbourne Institute of Technology
Publication Type:: Journal Article
Citation:: Accounting Research Journal, 2009, 13 (2), pp. 90 - 94
Issue Date:: 2009-01

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Field	Value	Language
dc.contributor.author	Walker, S https://orcid.org/0000-0002-7130-6520	en_US
dc.contributor.author	Partington, G	en_US
dc.date.issued	2009-01	en_US
dc.identifier.citation	Accounting Research Journal, 2009, 13 (2), pp. 90 - 94	en_US
dc.identifier.issn	1030-9616	en_US
dc.identifier.uri	http://hdl.handle.net/10453/17572
dc.description.abstract	Predicting the price at which a stock will first list on a stock exchange is not an easy task. In this paper we present a market valuation of Optus based on data available before the listing date. As a by-product of our analysis we provide a method of valuing some non-renounceable rights issues. The valuation of Optus is based on the price behaviour of shares in Mayne Nickless. A large tranche of the Optus shares were to be made available through a non-renounceable e~titlement offer to shareholders in Mayne NIckless. In principle, by observing the exentitlement price drop on Mayne Nickless shares, an estimate can be made of the value of Optus. In reality there are complications in this approach. For example, Mayne Nickless went ex-dividend and ex-entitlement on the same day. We overcome these problems by utilising price differences from concurrent trading in Mayne Nickless shares, ex-dividend/exentitlement, and ex-dividend/cum-entitlement.	en_US
dc.publisher	Royal Melbourne Institute of Technology	en_US
dc.relation.ispartof	Accounting Research Journal	en_US
dc.title	A market valuation for Optus pre-listing: a case note	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	13	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Finance Discipline
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.issue	2	en_US
pubs.volume	13	en_US

Abstract:

Predicting the price at which a stock will first list on a stock exchange is not an easy task. In this paper we present a market valuation of Optus based on data available before the listing date. As a by-product of our analysis we provide a method of valuing some non-renounceable rights issues. The valuation of Optus is based on the price behaviour of shares in Mayne Nickless. A large tranche of the Optus shares were to be made available through a non-renounceable e~titlement offer to shareholders in Mayne NIckless. In principle, by observing the exentitlement price drop on Mayne Nickless shares, an estimate can be made of the value of Optus. In reality there are complications in this approach. For example, Mayne Nickless went ex-dividend and ex-entitlement on the same day. We overcome these problems by utilising price differences from concurrent trading in Mayne Nickless shares, ex-dividend/exentitlement, and ex-dividend/cum-entitlement.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/17572