Fairfax are reporting McGrath Estate Agents CEO John McGrath as saying he did not have an answer as to why the share price of his recently floated company has fallen.
Maybe this will help explain, the statement coming directly from the company themselves…
"Market conditions have become more challenging in the short term including a slowdown in Chinese buyer activity, increased stock market volatility and the impact of APRA regulatory changes which increase risk in the sector."
McGrath Ltd (ASX: MEA) shares plunged almost 15% after they released their maiden results as a public company, now trading at $1.45, a far cry from the IPO price of $2.10.
Although McGrath re-affirmed it has met or exceeded all the forecasts in its prospectus, the outlook for the business, and the property sector in general, has clearly taken a turn for the worse in recent months.
And that's something that wasn't in the prospectus. Welcome to the public markets, John McGrath.
