UK equity lawyers agree with
investors opposition to aggressive syndication on UK
initial public offerings (IPOs).
A letter sent by BlackRock to
investment banks in May outlined concerns surrounding fees on
IPOs, unrealistic valuations of issuing companies and the
growing number of banks syndicated on each listing.
I agree with
BlackRocks point on syndications, said one
Issuers are thought to push
for the syndication to create competition amongst the banks,
leading to small, often insignificant roles for each
Glencores London IPO, valuing the group at about