Investors were cautious about Italian construction firm Astaldi’s stock market debut last month, after shares promptly fell some 3% following concerns that the company remained expensive relative to its profit potential.
In the first morning of trading, Astaldi shares were down 2.6% at US$2.98, compared with the initial public offering (IPO) price of US$3.06.
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Astaldi, which is involved in transport, highways, bridges, tunnels and other infrastructure projects, placed 42% of its capital in the IPO. Valued at US$293M at the current market price, it was billed as the first real stock flotation on the Milan bourse this year. In comparison, Italy’s leading construction firm, Impregilo, is worth US$463M.
Astaldi’s initial decline surprised some fund managers. The Italian prime minister’s recent ambitious infrastructure development programme suggested strong growth prospects for the company.
