Foreign funds managers' interest in this IPO is also expected to be high.
Bumi Armada is an oil and gas services provider. Yes, they provide the mechanization for oil exploration currently in more than four regions of the world. It is I believe the only company based in Malaysia that is involved in this niche industry. Bumi Armada was taken private in 2003 when its share price was RM7. Its relisting was postponed several times due to world's financial crisis and economic uncertainties.
The number of shares offered for retail investors are much more than that of MSM which by the way had a fine debut on 28 June with an upside of more than 30% of its institutional IPO price. We should expect Bumi Armada to have that kind of debut . Your chances of getting this IPO shares are slightly better than MSM.
The IPO price for Bumi Armada is set at RM3.15 and the closing date is on 7 July at 5pm and its listing on Bursa will be on 21 July. As I've just returned from Australia, I am unable to truly garner my finances to apply for this IPO so I am forced to sell my PNB units to get the necessary cash. I am , by the way , offloading my non-performing stocks just so I will be able to put back a good percentage of my withdrawal.
I will only perform my ESA on 6 July a day before the closing date as I am waiting for other financial sources to apply for this IPO so as to increase my chances of getting a portion of it. It is conceivable that at balloting the more shares you apply the greater the chances of you getting it. Many of those who applied less than 20k shares for MSM recently had failed to be picked out.
The post-listing price of Bumi Armada is not expected to be wildly dictated by market forces as its anchor institutional investors like PNB and Insurance and investment companies are expected to keep their investment for up to two years. Pricing the IPO at RM3.15 seems to provide the company some kind of buffer in case the world economy becomes more volatile or decline on Greek Debt woe, American uncertain economic data and the easing of the economy by China. The globe is indeed interrelated now by default.
However those who could withstand the current volatility pressure will eventually benefit. That is why it is important to buy shares using your own money and not otherwise.
And so here's wishing you all the best of luck again for your application of the Bumi Armada's IPO units.
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7 comments:
Hi Marcella,
I don't like this one. Judging from his (the boss) style - When he could foresee to earn huge money from a company, he will delist it. After milking lot of money from it, then he will sell its shares to all (list in bursa again. You can see his good example - Maxis.
Another reason is this business has attracted many competitor. It need good contacts and sometime have to slash prices.
Above just my point of view.
Anyway, wish you good luck!
I missed the Old Town Coffee IPO. May buy from market. :)
Dear AC,
Thank you for your thoughts and kind advice.
We will beat the old man at his own game, we will buy and fly :D
Many people express the same sentiment about AK but he is getting old he cannot bring the wealth to the grave. I think he is creating more companies and more jobs for people and many charities that is why he has that strategy, not so much for himself.
The anchor tenants look impressive with PNB being roped in. But their investments will be locked for two years!
Sorry to hear you missed Old Town Coffee IPO at 1.25 it is cheaper than Bumi Armada. Buy from the market and I pray many people will continue to drink their coffee just so the share price will go up for you :)
Thank you for your wish... I am going in a bigger way this time as an old Uni friend has transferred some fund for me to apply for BA IPO.
My remisier just sent me his firm's research paper. They concluded with this line:
'Applying a P/E ratio of 15 times into our EPS forecast of 21.5sen for FY2012, it is worth about RM3.22 representing a 2.22% upside on the indicative IPO price of RM3.15 per share. Hence,
we believe that the stock price has been fully valued.'
I just to share some my views and info. Not to put cold water on your hot and burning desire for this IPO. I think you are also an old man in this IPO game. :) You should well deserve to act on your own.
Dear AC you may right as an earlier IPO price range was 2.40 to 3.15 and we kind of expected it to be at 2.80 but remember this is a cyclical industry and at the moment it is on an upside till about 2015.
The same thing was said about Pchem but look where it is now.
Anyway thank you for giving me the expert's view. I appreciate it. I have not applied yet and have about 4 hours to think it over. Will let you know.
An old man could be obstinate sometimes ;)
hi im new for this share stuffs.. can anybody tell what are the condition for buying shares, where to buy and the term 'bursa'? expecting for reply
Dear AC and Marcella
Im totally new for this share market and i need a basic guidance before i start investing.. what are the conditions,where to buy shares,any age limits,and the term bursa.. TQ expecting reply
Dear Carlos Ane,
In Malaysia where I live, you have to register with a stockbroker and also with the stock exchange (named BURSA in our country) and get your CDS account number to trade on the exchange through the stockbroker or online.
If your application to register with the stock exchange is successful than you can buy shares listed on the stock market.
Go to INVESTOPEDIA and learn all about investing. Do not borrow when you want to buy shares as it is dangerous especially when your selected stock is not performing!
Good luck to you and happy investing!
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