Raising capital in Oz
Here's a new market for all those underemployed and underutilized investment bankers who still have jobs: the Daily Planet is set to go public in an IPO in 2003. What's newsworthy about this is that the Daily Planet is a brothel. The brothel is only aiming to raise 22 million Australian dollars, so it's by no means a huge IPO, but I am sure the investment bankers will be happy to take on the business. It should be enough for the Daily Planet to finance its further growth. One appealing aspect of its business that it's recession-proof, or so the proprietors claim. That will put it apart from the rest of the hospitality business, which tends to be highly cyclical. If the Daily Planet can generate a steady stream of free cash flow and return a good proportion of earnings to investors through dividends, it could be an interesting combination of a high-yielding stock with strong growth if they expand. Of course, the key question is: how will analysts investigate the Daily Planet's financials before buying the stock? Field research could become very interesting indeed. "All part of due diligence, sir!"
Posted by qsi at December 13, 2002 10:51 PM
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