Babcock & Brown explodes onto ASX

Investment bank Babcock & Brown experienced one of the Australian sharemarket's most explosive listings, with the company’s stock jumping from the listing price of $5 to $8.27. Babcock is a real estate, infrastructure and private equity investor with global operations. While based in San Francisco, the company chose to list in Australia. Managing director Phil Green described the response as flattering and surprising but warned that the group’s shares price stood at a 20 times earnings multiple: “That's a pretty high growth rate. We're very confident of our growth potential but we've got a lot to do to continue to maintain a 20 times earnings.”