The S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain on Monday. In early afternoon trade the benchmark index is up 0.5% to 6,572.1 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
BlueScope Steel Limited (ASX: BSL)
The BlueScope Steel share price is down 2.5% to $16.80. This is despite there being rumours that the steel producer could be a takeover target. There is speculation that private equity firms could be willing to pay as much as $25.00 per share to acquire the company.
Home Consortium Ltd (ASX: HMC)
The Home Consortium share price is sinking 8.5% lower to $3.87 after the successful IPO of HomeCo Daily Needs REIT (ASX: HDN). HomeCo Daily Needs was established through a capital reduction of Home Consortium and effected via a distribution in specie of ordinary units in the REIT to securityholders. In other news, this morning the property company announced that HomeCo Daily Need has entered into a binding contract to acquire Marsden Park Shopping Centre. It has agreed to pay $48 million for the Queensland-based convenience focused asset. This represents a cap rate of 6.75%.
Insurance Australia Group Ltd (ASX: IAG)
The IAG share price has sunk 5.5% lower to $5.15 following the completion of its institutional placement. The insurance giant has raised $650 million through the issue of approximately 128.7 million new shares to institutional investors at a 7.5% discount of $5.05 per new share. It will now seek to raise a further $100 million via a share purchase plan. The company launched the equity raising last week in order to strengthen its balance sheet following an $865 million business interruption claims provision.
Kogan.com Ltd (ASX: KGN)
The Kogan share price has dropped 3.5% to $16.88. This may have been driven by a broker note out of UBS this morning. Although the broker has retained its neutral rating, it has reduced its price target from $22.00 to $18.00. While Kogan delivered a strong trading update at its annual general meeting, its growth fell a touch short of the broker's expectations. UBS also has concerns that recent gross margin strength is unsustainable.
