That's probably to be expected - VCM and DCM companies are smaller, have shorter trading histories and have to meet fewer listing criteria than other sectors. The motivation behind having VCM and DCM boards is to encourage newer groups needing capital. And the exceptions are significant - popular investments Streamworks and Stella Vista, for example, are among the VCM achievers of the year. Call centre company CIH was listed in April by PLJ Financial Services after shelving an earlier attempt and putting a loss-making year behind it. Neither below-forecast interim results nor the resignation of its CEO early into its listed life inspired confidence, and the share sank.
Prospects look tentative, to say the least.
Of course, all this negative sentiment doesn't imply that every company that listed in 1999 was a shoddy affair. During the year, a number of gems with exciting potential joined the boards. To fund managers who invest in new listings, the obvious criteria of good management and a track record have become more important, says Nick Pagden, Merrill Lynch investment banking head. Previously, fund managers would take a stake so they wouldn't be left out of an increase in the share price. Cynicism crept in.