Bottom Line: Careful pricing
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.PROMOTERS of the flotation of Chamberlain Phipps, which produces cobbling materials, have gone to great lengths to ensure that the newly quoted shares will go to a premium when trading begins two weeks from now.
The 165p issue price is modest and the notional yield generous. For example, the flotation price is equivalent to just under 11 times the company's pro-forma earnings per share and the yield is 5.5 per cent.
Chamberlain, supplying component materials to shoe makers, is not in an industry with obvious growth prospects in the UK.
In a static market prices will also always be under pressure, with end customers including Marks & Spencer and Clarke to deal with. In the circumstances it has done well to widen profit margins in its main business from 1.5 to 6.9 per cent in three years.
The pricing of the issue takes account of the problems. It gives opportunities to stagging investors but the long-term prospects are less certain.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments