If you want to know how tough is the current IPO market, look no further then Singapore market.
We have not seen any new IPO for about 2 months since the last. Whereas last year we may have 2 or even 3 IPOs running concurrently.
The latest IPO on hand is Otto Marine launches IPO at 51 cents apiece. They are an offshore marine group engaged in shipbuilding, ship repair and conversion and ship chartering.
If they launch their IPO one year ago, their share will be selling like hot cake, but no now. Instead, no one will bother to write a letter to newspaper forum to complaint that there are only 1 million shares for public offer out of total 235.3 million.
The application period is short, just 4 days.
My perception is that they do not even bother about the public response. The issuer probably has factored in lukewarm response.
Now, look at the history.
In last IPO, China Kunda has launched at 21.5 cent apiece and maintained the share price above water consistently throughout the most volatile month in near term history. China Kunda last traded at 24 cents now. Impressive despite the lack of liquidity (but with close spread).
The possibilities of share price ‘intervention’ by interested parties are high. The chance that Otto Marine to repeat the performance of China Kunda is relatively high.
We have not seen any new IPO for about 2 months since the last. Whereas last year we may have 2 or even 3 IPOs running concurrently.
The latest IPO on hand is Otto Marine launches IPO at 51 cents apiece. They are an offshore marine group engaged in shipbuilding, ship repair and conversion and ship chartering.
If they launch their IPO one year ago, their share will be selling like hot cake, but no now. Instead, no one will bother to write a letter to newspaper forum to complaint that there are only 1 million shares for public offer out of total 235.3 million.
The application period is short, just 4 days.
My perception is that they do not even bother about the public response. The issuer probably has factored in lukewarm response.
Now, look at the history.
In last IPO, China Kunda has launched at 21.5 cent apiece and maintained the share price above water consistently throughout the most volatile month in near term history. China Kunda last traded at 24 cents now. Impressive despite the lack of liquidity (but with close spread).
The possibilities of share price ‘intervention’ by interested parties are high. The chance that Otto Marine to repeat the performance of China Kunda is relatively high.
Company website: http://www.ottomarine.com/
0 comments
Post a Comment