DBCO IPO on nasdaq effect on tsx price

Hi there,

DCBO priced its US IPO at USD$48.00 per share which was at a discount to the TSX related shares. This is done to entice big U.S. investors to participate in the IPO and is quite normal. The net effect however, is that there is likely to be price weakness which is what you are witnessing on the TSX Index price over the past couple of days.

This is a short term pricing headwind - think of it as the company doing a secondary offering on the TSX at a discount to the share price. The price is likely to consolidate around the offering price as the markets absorb the shares. LSPD actually used a similar strategy earlier this year, and its share price also dipped at the time. We all know how it is doing now.

Mat