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Metroglass, Scales likely to get over the line

Metroglass, Scales likely to get over the line as instos peruse offers

By Jonathan Underhill

July 3 (BusinessDesk) - Metro Performance Glass and Scales Corp, seeking to raise a combined total from selling shares of about $460 million, are likely to succeed in their initial public offerings, investors say.

Matthew Goodson, who helps manage $650 million at Salt Funds Management, said his firm has rejected investing in two other IPOs in the current pipeline but has managed to arrive at a valuation for Metroglass and Scales.

"I think they will both get up," he said. "IPO businesses are not seasoned in public view. There's a bit of risk there."

Scales, the fruit and vegetables logistics group, is seeking up to $186.5 million in its sale, pitching about 100 million shares at between $1.60 and $1.85 a share. Direct Capital will sell down its 84 percent stake in the sale. Metroglass aims to sell as much as $273 million selling shares in a bookbuild posed in a $1.65 to $1.90 a share range.

The sales have been subject to spin and counterspin as sale managers and institutions push for a favourable price. It has been widely reported that Hirepool withdrew its IPO because institutions wouldn't accept the price. Still, Goodson says institutional fund managers haven't ganged up push the prices lower.

"Now we have got the capability to do some independent work and come up with our views," he said. "We absolutely do not talk to anyone else."


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