FCA not fit for purpose as Pure Gym float favours institutional investors

Discussion in 'Market News' started by Lily, Sep 14, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Regulator has allowed public to be squeezed out of the IPO game as City crew gets first chance to invest

    Here’s an interesting business on its way to the stock market to raise £190m. Pure Gym is chaired by Tony Ball, who as chief executive of BSkyB in its early years helped to change television viewing habits in the UK. The gym chain is another tale of “disruption”, promises Ball, which might encourage some of the 785,000 members to think of backing the IPO, or flotation, with a few quid. Forget it, unless you are a gym-goer who is also a fund manager.

    Yes, this IPO is another dreary institutions-only offering, which is par for the course when, as here, the seller comes from the land of private equity. Ordinary investors’ first chance to buy arrives only when the shares start trading. Worse, the whole IPO process could almost be designed to discourage general interest.

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