Cash boxes a sign of equity bubble

The stock market boom must be near some sort of high judging by the quality of recent initial public offerings including Allco Equity Partners and Rubicon America Trust. Allco seeks for $500 million, while the managers of the fund, including former Publishing and Broadcasting chief Peter Yates, earn an up front, free stake equal to 10 per cent stake. The normal front end for a venture capital fund in between 1 and 2 per cent. For the Rubicon America Trust, every one dollar shares opens for trading with a net asset value of only 82 cents.

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