July 01, 2011
Oldtown- So Little Coffee to go Around
Oldtown Berhad has completed its balloting. The results have shown that even the bumi portion has been oversubscribed by more than 3 times. As for the public portion, almost little chance even for one drop of coffee.From the ballot table, my chance is one in eleven.
Well, after reading some investment bank report that said there is a 25% upside to this issue, I took on another risky venture by going for yet one more wild Bill Hickok outing.
My forays.
UOA Development is an unmitigated disaster. Not all the King's men including UOA Australia, UOA Berhad and good ole EPF could do anything for its current melee. Went through the floor just like Rumpelstiltskin! Today it is shuddering at RM2.25 after losing 37 sen.
Then we have Eversendai. Did not lose but got candy cash. Too heavy,those steel structures, methink!
Yeah and missed the big one-MSM.
So,whether I get Oldtown or not, I do not fret too much because I believe that there are just too many IPOs going around at this juncture in time. The good one is obviously Bumi Armada.
May just concentrate on this one-lah
Well, after reading some investment bank report that said there is a 25% upside to this issue, I took on another risky venture by going for yet one more wild Bill Hickok outing.
My forays.
UOA Development is an unmitigated disaster. Not all the King's men including UOA Australia, UOA Berhad and good ole EPF could do anything for its current melee. Went through the floor just like Rumpelstiltskin! Today it is shuddering at RM2.25 after losing 37 sen.
Then we have Eversendai. Did not lose but got candy cash. Too heavy,those steel structures, methink!
Yeah and missed the big one-MSM.
So,whether I get Oldtown or not, I do not fret too much because I believe that there are just too many IPOs going around at this juncture in time. The good one is obviously Bumi Armada.
May just concentrate on this one-lah
June 30, 2011
Eversendai-A Partial Drip Dip
Oh yes, Eversendai almost got clobbered on opening day with a low of RM1.71 and a high at RM1.82. Imagine a cent above issue price to institutions!
Lunch close saw it at a feeble RM1.74 with sellers aplenty and bargain hunters trying to drag down the price further. Looks like a gravity way here, Datuk Nathan!
At this rate, it will be sad to actually succeed in any public balloting. It is no longer a worthy effort to subscribe IPOs as premium seems razor thin even when analysts are expecting it to have at least a 20% premium.
Looks like the only IPO worth subscribing now is Bumi Armada.
Eversendai closed at RM1.72 for a 2 sen gain. Epic catastrophe!
Lunch close saw it at a feeble RM1.74 with sellers aplenty and bargain hunters trying to drag down the price further. Looks like a gravity way here, Datuk Nathan!
At this rate, it will be sad to actually succeed in any public balloting. It is no longer a worthy effort to subscribe IPOs as premium seems razor thin even when analysts are expecting it to have at least a 20% premium.
Looks like the only IPO worth subscribing now is Bumi Armada.
Eversendai closed at RM1.72 for a 2 sen gain. Epic catastrophe!
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!
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!
June 29, 2011
Eversendai-The Qatar Nexus Potential
Eversendai Corp Bhd, en route to a listing on Bursa tomorrow seems to have a favoured nexus to Qatar, winning more contracts from the Qatar Foundation. This time it is for the Nakilat shipyard project in Qatar worth a RM165 million.
Eversendai will be involved in the construction of the main super yacht finishing hall and energy centre building.
This is the second contract it has won from Qatar Foundation for the shipyard project. Last year, it was awarded Phase 4, worth slightly over RM100 million, which it had completed.
Eversendai indicated that it is eyeing more jobs in Qatar as the country prepares to host the FIFA World Cup in 2022. This is the mother lode for sure.
Qatar plans to spend some US$30 billion (RM91 billion) on infrastructure development for the event.
For the shipyard contract, Eversendai expects to finish the job by June next year.
"This is a huge shipyard project. For phase 4A itself, we will use about 7,000 tonnes of steel structures and 60,000m2 of covering linings," said Nathan, the founder and MD.
Year-to-date, Eversendai has won contracts worth RM520 million, increasing its order book to RM1.6 billion.
It is also bidding for RM1.5 billion worth of infrastructure, high-rise building and power plant projects in Southeast Asia, India and the Middle East.
Will Eversendai received a warm welcome on the Bursa tomorrow like MSM or be given 'a cold day in Hell' just like UOA Development?
Let us see the finicky public reaction tomorrow.
June 27, 2011
Eversendai-Will it Trail-blaze like MSM?
Eversendai, an integrated steel contractor with engineering, structural design, fabrication and erection capabilities have carved a niche in the business both locally and abroad.
It has completed over 100 projects including Dubai's landmark hotel, Burj Al Arab, BurjKhalifa, The Dubai Mall, Dubai Airport Control Tower, Singapore Indoor Stadium, the Philippines' Mabalacat and Bamban Bridges, and Saudi Aramco in Riyadh.
Locally, it has been involved in projects as a specialist contractor for the Petronas Tower 2, Suria KLCC, Kuala Lumpur Tower, KL International Airport, KL Sentral Station, Putrajaya convention centre, new Bintulu airport, Manjung power plant, and the PKT Logistic project.
Impressive list, don’t you think?
So now, Eversendai is gearing for its maiden listing on Bursa Kl comes 1st July. The IPO share issue in cludes 30% of the share from its founder, Datuk A.K. Nathan who will be realizing RM130 million from it. Altogether, Eversendai will raise RM270 million from this public outing.
Eversendai will also be using the proceeds to build a new plant at Trichy, India and expand plant facilities in Rawang as well as to build staff accommodation in the Middle East.
Datuk Nathan said that the choice of Trichy over other locations in India was made because it was easier to get skilled manpower for the plant there.
Eversendai has four plants that provided all the fabrication works for its projects that span from Malaysia to India and the Middle East.
The plants are located in Rawang, Dubai, Sharjah and Qatar.
The Rawang plant on 4.8ha is capable of churning out up to 24,000 tonnes of fabricated structured steel a year while the plants in the Middle East have the capacity of fabricating up to 96,000 tonnes of steel a year.
The new plant in India will have a 30,000-tonne-a-year fabrication capacity.
Nathan says the company has an order book of RM1.5bil and was on the look out for more jobs in the Middle East, India and South East Asia.
“About 94% of revenue from the RM1.5bil jobs will be realised this year and the rest by 2013,” he said.
The company targets revenue to hit the RM1bil mark this year and net profit should be about 10% to 15% of that.
Last year, Eversendai recorded revenue of RM744.9mil of which 76% was derived from its operations in the Middle East, and chalked up a net profit of RM116mil..
“We would continue to eye more jobs from our regular clients and others.
“We are a niche player in this business and we do not have many competitors (in this field).
“Our challenge going forward is to maintain the work culture and standards set but the expectations of our clients are rising and to cater to that we need to keep improving and constantly train our staff so that they are in sync with company's philosophies,'' Nathan said.
The IPO involves a public issue of 160.7 million new ordinary shares of 50 sen each which will be allocated to selected and institutional investors.
After seeing the magic spun by MSM and the woes told on the faces of UOA Development,what do you think is the fate of Eversendai?
Some speculators say it should do okay with marginal gains while the naysayers said it may be cannibalised by Bumu Armada is that comes too soon on the tail of Eversendai.
For now, it looks like a fair buy.
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