|
?
I expect Mr Cloud will still get his float. IPO's are often pulled if market sentiment towards the sector involved looks hostile in any way. This is to ensure the float does not fail, which would be a huge embarrasement to Seymore Pierce, and Crystal Gaming (if they are bothered). It will also hurt the reputation of SP, and their expertise is in the IPO industry. Underwriters of the issue will be left holding the unallocated shares, which will cost them, and make them wary of underwriting further issues.
I would expect a Spring or Autumn attempt to breathe life back into this float, as the market often winds down in the Summer months. Market Proverb "Sell in May and go away".
If Mr Cloud hands over the role of CEO, and even leaves the board, his past behaviour will not be a big issue - it will be the performance of the management at the time of the float that will be analysed by the financial press. All it takes is a financial writer to have had a keen personal interest in gambling online themselves though..............
|