Man Group division's IPO hit by cautious market
Spin-off of MF Global, the hedge fund's brokerage arm, is affected by investor reluctance following shocks in the US sub-prime mortgage sector
Man Group’s high profile float of its brokerage division on the US stock
market has brought in a significantly lower amount than expected.
In spinning off MF Global, the FTSE100 quoted hedge fund was looking to
raise between $3.5bn (£1.75bn) and $3.8bn, but only managed to generate $2.9bn.
The below-par fundraising was attributed to a slump in the US sub-prime
lending market, which has cooled investors’ appetite for backing new issues.
Speaking in the FT Peter Clarke, chief executive of Man Group, said
of the float: ‘There is some extra work people have to do in this environment to
ensure they know what they’re buying into.’
Further reading:
Q&A: Man Group FD, Kevin Hayes on life
after the IPO