Behind-the-scenes book builds for glass manufacturer Metro Performance and apple grower Scales got under way yesterday and indications from market sources are that there is a strong "push back" on pricing.
Both share offers involve substantial sell-downs by their majority private equity owners and the fear was that they would go the same way as last week's initial public offer for Hirepool, which institutional investors rejected as being too costly.
One financial market source said institutional investors were pushing back on price but that it felt like both offers would "get away".
"My feeling for the Scales and Metro Glass book builds is that, unlike Hirepool, they will definitely get away," said one financial market source, who requested anonymity.
He said it came down to a question of the price range for both offers. "Probably the lower end of the range is likely when they both price."
