Intense interest in IEP share tender

Press, 30 May 1985, Page 24

Intense interest in IEP share tender

PA Auckland Brierley followers here have been flocking to take advantage of the Industrial Equity (Pacific), Ltd, 19 million share tender issue which is expected to raise around $l2O million for the company. But the investors (some Auckland brokers describe them as Brierley disciples) should not expect an immediate large profit once the tender or strike price is set in Hong Kong this afternoon.

Some consider that the price for the new lEP shares will be set at between SHK2O and $23, with $HK22.50 being the most popular strike rate. With a current exchange rate of SHK3.S to SNZI, that means investors here can expect to see the new lEP share listing at around $6.30. One broker, Mr Mike Daniel, of Morrow and Benjamin, said he did not see “a great big stag” in the tender issue. “I see it more as a long-term investment.

“All of a sudden people will have shares in what has been a very tight scrip situation for lEP. I’ve got my doubts that the price will climb immediately.” Morrow and Benjamin, however, are leaving it to the last minute before putting in their tender price. Whatever price is struck, there is likely to be intense interest and excitement when the issue opens at 3.45 p.m. (N.Z. time) today. It will close 15 minutes later and is expected to be substantially over-subscribed.