The firm’s stock tanked by almost 60 per cent on its first trading day, with several Macquarie advisers reportedly forced to wear the losses on behalf of the clients. “They knew it [the IPO] was going to tank,” a Macquarie insider told the AFR of the float. “If you were a small client or small business writer, you were left with stock.
Seven current and former Macquarie staff have reportedly claimed the investment bank permitted several wealthy clients to exit the float at the last minute, with over $20 million worth of BrisConnections stock returned to Macquarie brokers ahead of the toll road firm’s ASX debut.
A Macquarie spokesperson told the paper that stock allocations remain fluid ahead of a payment and the bank would “welcome the opportunity for clients to raise any circumstance where they believe treatment may have been inappropriate.
Macquarie Group has been hit with allegations it allowed a number of affluent clients to pull out of the 2008 float of BrisConnections when it became clear the listing was going to struggle, The Australian Financial Review reports.
Read more here: Business Spectator