Fund managers are expecting scale backs at this morning's OzForex IPO bookbuild - underwriters Goldman Sachs and Macquarie Capital are seeking to raise $440mm...

Fund managers are expecting scale backs at this morning's OzForex IPO bookbuild - underwriters Goldman Sachs and Macquarie Capital are seeking to raise $440mm in an underwritten deal for the company. With more than half a dozen fund managers signed up to buy $30-50mm stock each, demand is expected to easily exceed supply. Nonetheless, many investors have baulked at the hefty price tag of 21.7 times PE multiple - calculated off the proforma forecast of $22.1mm profit for the 12 months to September 2014. Although the bookbuild opens today, the underwriters have already promised most of the shares as part of their decision to underwrite the offer last month. Bids are also expected from retail brokers, who have been allocated $40 million of stock. OzForex is set to begin trading on Friday. (VIEW LINK)