Thoughts on new GQG float

Hi John,

Thanks for the positive feedback, it always puts a smile on my face, especially on a weekend. GQG is a global fund manager running around $US86bn in assets. They are set to list on the ASX raising $1.2bn which is big and they’re pricing it on 16.5-x to 18x forecast profit, which would value the business at somewhere between $5.9b to $6.5b on a market capitalisation basis.

Comparing that to Magellan which runs $US83bn they have a market cap of $6.2b so they are very similar size businesses, MFG however is now priced on 14x FY22 foretasted earnings making it slightly cheaper on an earnings multiple. On a positive side,  I do think GQG has a more well-rounded business with less key person risk relative to Magellan.

Overall, it looks a solid but not spectacular float on first pass through however I haven’t spent a lot of time on it.

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Magellan (MFG)

LAST UPDATED 09/10/2021 08:15

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Magellan (MFG)

LAST UPDATED 09/10/2021 08:15