atans1

Posts Tagged ‘Garuda’

Lesson for our SWFs

In Corporate governance, GIC, Temasek on 17/02/2011 at 9:18 am

I’ve ranted at how Temasek and GIC allowed investment banks to short change them (and us) in two IPOs:  the share prices traded way above IPO price on listing,

Well it’s nice to see that the Indonesians screwed the investment banks over the Garuda IPO, the share price falling 20% below IPO price, with the underwriters stuck with abt half of the shares,

Now I’m not saying that our SWFs should play that rough with the investment banks — there will be adverse consequences for Garuda when it tries to raise more money and the Indonesian authorities when they try to sell other companies — but our SWFs should try to keep the premiums to around 5%. It’s hard, but they shld try.

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