Shares in Platinum Asset Management roared out of the blocks yesterday, making it one of the most successful Australian Securities Exchange (ASX) listings of the year.
Shares in Australia's biggest hedge fund manager leaped a staggering 76 per cent on their ASX debut, from the issue price of $5 up to $8.80 by the close of trading on Wednesday. Almost 30 million shares changed hands.
The firm's founder, Kerr Neilson, has become a billionaire thanks to the manager's success and his holding in the company is now worth almost $3 billion.
Platinum, which manages about $22 billion in assets, chose to float 25 per cent of the firm and did not offer stock to institutional investors.
The rest of the firm is owned by Neilson, his wife and staff.
Platinum specialises in international equities and has boasted stellar returns, which are twice as high as the MSCI World Index, over the past decade.
The firm posted a net profit after tax of $188 million for the year to June 2006, up from $121 million for the previous corresponding period.
