Kip Powick Posted March 24, 2006 Share Posted March 24, 2006 Investors from coast to coast have been calling their brokers, clamouring for a taste of the action. But most are being turned away. Even if Tim Hortons keeps to its plan to sell 29 million shares, it won't be nearly enough to meet the demand. All the hype makes it more likely that the stock will be a letdown immediately following its launch, observers say. "It's people thinking with their bellies, not their heads. There's going to be a tremendous price run-up because of the excess demand," said Lew Johnson, finance professor at the School of Business at Queen's University. "I think in two months it's going to be at or below the issue price because of that frenzy. The real story here is don't buy (today) or Monday in the aftermarket. You'll get killed." Tim Hortons last night set its share price to initial buyers at $27 (Canadian) and $23.16 (U.S.), at the high end of the price range Tim's had suggested earlier this week and well above earlier range estimates. The shares begin trading in Toronto and on the New York Stock Exchange today. That issue price translates into about $784 million (Canadian), what underwriters say is the biggest North American initial public offering in nine months. Investment bankers managing the IPO may sell another 4.35 million shares to meet the demand. Link to comment Share on other sites More sharing options...
AAS Posted March 24, 2006 Share Posted March 24, 2006 Service Unavailable The server is too busy to respond to your request. Please try again later. This is all I can get from the TSX web site this morning. Link to comment Share on other sites More sharing options...
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