Tim Horton's IPO Tomorrow
I mentioned a couple days ago that today would be the Tim Horton's IPO. Sorry, but it's actually tomorrow. The sources I was looking at were wrong. Anyways, here is another short article about it:
The most-hyped IPO in recent Canadian history makes its debut on the stock markets Friday with a giant Bay Street party.
A giant Tim Horton's trailer will be parked in front of the TSX, serving up coffee and doughnuts to the brokers who've been lusting after Tim's shares since the company first announced plans to go public. Hundreds of franchisees and guests will attend what is slated to be the largest listing ceremony in the history of the Toronto Stock Exchange.
Few ordinary investors will be lucky enough to get in on the ground floor. Because the share offering was masterminded in the U.S. by Goldman Sachs, institutions are likely to bag the biggest chunk of Tim's shares. Ordinary investors who've turned Tim's into a Canadian icon with their almost-daily coffee-and-doughnut purchases will be left to fight it out in the after-market, and will likely pay a higher price for their shares.
Wendy's International, parent company of Tim Horton's, plans to sell the rest of the company before the end of the year.
Some analysts, however, are warning that Tim's may not be the best buy some make it out to be. They point out that the coffee-and-doughnut market may be saturated and the opportunities for future growth may be limited. But even an increase in the price of the IPO seems to have done little to dampen investor's enthusiasm.
The one thing I don't like is how there is so much media attention around it. The thing I do like though is that analysts are saying that it might not be a good sign.
This reminds me of when Google went public a couple years ago.
Tim Horton's could turn out to be Canada's Google!