Fable: All That Glisters . . . . . .
13 years ago a semiconductor company went public on the Frankfurt exchange.
There had been a frantic struggle to get onto the ‘family and friends’ list to get priority allocation.
It was the hottest IPO of the year as a charismatic young CEO plugged the business’ potential.
The shares were offered in March at 35 euros and soared to 75 euros in a few days valuing the company at 45 billion euros making it Germany’s seventh most valuable company.
Two years later the shares were below 10 euros where, with a few brief exceptions, they have stayed ever since.
Moral: Perception is all