IPOs-Sauces, Dips and Gravy

Yes, as the sukuk got a tremendous ovation in the international market yesterday, shares on Bursa are again pushing the envelope to all time high. The worries on the Greek sovereign debt issue is also fast ebbing.

So, what's in store for IPOs in Malaysia?

The last 6 months had seen stocks with made mediocre premiums to super ones like Malaysian Sugar Manufacturers. Today it still has a huge premium of more than RM1.30; while others failed.

Let us  look at those on the ACE board. Most could barely scrap through with any premium.  Case in point is XOX which declined to 36% in value on the first day of listing. It has yet to show any recovery. Smartag did super well. Focus Lumber  continue to have a premium of 19 sen today while Century Soft has lost 24 sen. Mclean has lost half of its IPO price, sinking to a low 25 sen.

Those who had fair returns include Petronas Chemical, Focus Lumber,Benalec and Berjaya Food.

And those which disappoint immensely must include UOA Development which succumbed to selling pressure the first day. Who has been selling is still a 64,000 dollar question. This counter, despite, EPF,  UOA Australia and UOA Berhad's market purchases is still off the mark. At RM2.27, it has still to get claw back 35 sen to its listing price of RM2.62.

The few new shares after MSM include Eversendai, Oldtown and Bumi Armada. If the market continues to see sunshine, Oldtown should see at least a premium of 25sen above its issue price of RM1.25. For Eversendai, due to its overseas exposure, it may fetch medium value. Bumi Armada will be the one to watch. Issued at RM3.15, it should be a stock to offer good premium.

So, which stocks are sauces;which are dips and which are gravy?

Without doubt, MSM  and Smartag  are gravies while Focus Lumber is a sauce-spicy but yet sweet.

UOA is definitely a drippy dip!