HPI struggles on debut
Hotel Property Investments has made a lacklustre debut on the Australian Securities Exchange, with shares failing to reach the $2.10 offer price.
HPI, born out of failed pub landlord Redcape Property Group, finished its first day at $2.07, with shares trading between $2.09 and $2.04.
HPI owns 41 hotels and seven detached bottled shops that are managed by Coles. The float was managed by Goldman Sachs and JPMorgan.
David Gray, head of equity capital markets for JPMorgan, defended HPI's performance.
"It's a pretty good effort, given that the book build was done three weeks ago. The A-REIT sector markets have fallen nearly 5 per cent since then," he said.
Source: The Australian, 11 December 2013
