In a piece in today's Independent , SmartStream is said to be cutting it's IPO price ambitions from £250m-£300m to £175m-£200m. The reason given is market volatility resulting from the credit crunch fall out.
Our View
We had heard in the market that the price had been cut to £200m - £240m but a cut of this magnitude is a surprise. It does however put the company on around 10-11x forward EV/EBITDA which is starting to look good value. We'll post more on the company after the analyst meeting on Friday or before if we are able to get our hands on a pathfinder.
