City File: Paper chase

INVERESK, the paper company, comes to the market on Wednesday with a placing. There is a great deal of investor interest, with applications for six times as many shares as there are available.

The question is the size of the premium the shares will yield on the first day's trading. The placing is priced at 150p. Given the prospects and demand, if the shares stand at less than 170p by Thursday morning, they will be worth chasing.