One of the companies I work for listed for the first time on the Australian Stock Exchange on Tuesday. The opening share price was $1 a share. Many employees took advantage of the opportunity to get an allocation at that price, with no broker fees etc. Some already had employee share options which were converted to tradeable shares. I was able to buy some at this $1 price too.
Well, on the day of listing the price jumped to $1.18 per share! It seems the Australian offices were very hyped (I know of one office where they ran a ‘book’ on what the closing price would be on Day One—typical Aussies!)
In these days of share market doom and gloom that was pretty phenomenal and represents an 18% return. Not bad! Today the price is hovering around $1.16.
So how do you get hooked? Well, like others who had purchased shares at $1 each, I was interested to see what the first days would bring, so I went on to a share market site and found myself clicking ‘refresh’ a few too many times that day to be classed as a casual observer (*laugh*).
The ones who are really smiling though are like one of the ladies I work with—she has over 1m tradeable shares converted from all those she and her husband garnered in the 20+ years they have both worked for the company. An 18% return on $1m is some $180,000. Not a bad income for one day!!!
Update 5 June 2008: Little more than a week after opening, the price is now $1.25.
Rhonda Bracey: At Random 