The Failing Malaysian IPO Scene in 2012-2013

Hardly Making IT

These last two years has not been kind to IPO subscribers.

Made It

Gone are the days when hitting an IPO share issue is likened to a little lottery win.

Non-Starter

I have gone through some unfortunate issues and so did many.

Nose Above Water

Let us reflect with the background of the sudden deferment of the listing of Ranhill Energy and Resources Berhad (Ranhill) on 29 July 2013.

Sad Development-Aborted Listing

For me, I had the misfortune of getting some IPO shares.

Bonanza for Subscribers

I recalled how excited I was when I got Eversendai, Eita Resorucrces, Astro Malaysia Holdings and UOA Development Berhad UOA). Sadly they all faltered and most were not in the money, so to say. I lost badly in some, particularly when UOA free-fell to about RM 1.20 and below! Imagine the IPO price of RM 2.52! Ananda Krishnan's Astro suckered many, felling as long as RM 2.70 when the IPO price was RM 3.00. Today it has recovered to RM 3.00; but you would still take a loss at this price after paying overhead trading charges.

From Hand to Mouth

Eversendai has never recovered from its IPO price losses. Even today, you still lose 7 sen at RM 1.63.  Recently listed Leon Fatt, a steel product trader listed at RM 0.60 sen but today, at 63 sen, you are down by 7 sen. The last to be listed were AAX and ABM Fujiya (Fujiya)-a battery manufacturer from Sarawak. AAX is still supported by a stabilizing mechanism  at its offer price of RM 1.25. Fujiya is  trading at the 59-60 sen level;shy of its IPO price by about 1 sen.

Going Nowhere

Eita Resources at an IPO price of 76 sen  is still at its IPO level today. What a let-down for an elevator manufacturing company that cannot ascend!

Shareholders Can't Fly Yet

The biggest debacle might just be Ranhill which had to defer its allotment and listing because of  a revocation by Petronas of the licence of its subsidiary because of non-disclosure of critical information.

Lethargy

The only bright sparks of the lot are MPHB Capital which has gone up by 53% of its IPO price to shareholders. It is currently trading at RM 1.53 sen; giving a bonanza to the MPHB shareholders who bought into the subscription exercise. FGV which listed at an IPO price of RM 4.45 had breached the RM 5 level but today its sulking at a dim price of RM 4.49 level, with a big fat zero gain after deducting for trading overheads. Tune Insurance with an IPO price of RM 1.35, however, is doing pretty well just above RM 2.00 level. Will it gain traction and move forward?

So, what do you now think of Sona Petroleum ? Will this SPV get premium prices from a dull Bursa with massive selling of bluechips by foreign funds except for government held securities such as Maybank, Sime Darby and Tenaga?

Winner or Loser?

Would be interesting to see what Sona will fetch on July 30th.

Sonia opened with a 20 sen gain on its warrants and mother share.

As for Ranhill, it has aborted its listing.