I don't know about you, but my experience with IPOs has been both positive and negative. I have yet to find time to blog specifically on my encounters with IPOs including my recent disaster with ASTRO. Needless to say, one needs to be very selective when applying for an IPO.
I was late in finding out about Westport's. I quickly read the prospectus and have a look at their website and note who are the people owning and managing this business and the reasons they are going public. My utmost concern is when a company is raising fund from the public to pay for their debt. I will keep away from such an IPO unless their fundamentals are strong. I will also keep away from an IPO of a newly established company whose business has too many competitors and risks: the main reason I gave AirAsia X a Big X.
I have a different feel though about Westports. This is a company which has a good track record of growth and corporate governance. They are not issuing new shares instead releasing portions of the main shareholders' existing units for this IPO exercise. No indication that they are out to enrich themselves. And I also like that father and son.
Some people are worried about the above point simply because we have been told umpteenth time if the company's insiders are disposing their shares, we should be aware as the business might not be doing well.
I am taking a contrarian view with regards to this company and have decided to apply for their IPO. I am also comfortable with the cornerstones investors and their lock-up period of six months.
As I only knew about this IPO on 19 September the date of its launching, I was hard pressed trying to scramble the fund as the bulk of it is in Unit Trusts and as luck would have it, my HSBC ATM card has just been changed to a new one which is yet to be linked to my CDS account! And the closing date of this IPO application is on 27 September which effectively only left me with five banking days and it takes three days to activate my new ATM card to enable its ESA (electronic share application) function.
To complicate matters, the ASNB agent informed me that if I were to redeem my requested units she needed to issue a cheque which could only be cleared by the bank in three days. And on top of all this, I don't really have much time to go to all these places to complete the required transactions.
Then I thought of my banker at Maybank, good old Agnes. My SMS to her was simple: could I transfer some fund from PNB unit trusts directly into my account at the bank? Her reply was a relief: yes, no problem! And so I proceeded to Maybank at midday Friday to deposit some cash for topping up and then performed the PNB-Maybank transfers and in less than 15 minutes I was ready to apply for the IPO online through Maybank's internet banking facilities. How is that for a fast solution? No need for the inconvenient ESA and I could apply after-hours at my leisure at home.
Of all the time, I decided to go online just before midnight to perform the online application. It's another experience for me as this was my first time to do so because all my other IPO applications were through ESA. The five steps are easy enough and when you wrongly type in the number of applied units there is always the "go back" alert. Just after I printed my "successful" receipt at 11.57pm, the system automatically shutdown with a busy signal screen coming up! Then I realised that there must be a system which automatically checks the internet banking facilities just around midnight before the next day's operation.
And so it is not advisable to do internet banking especially when you are transferring fund around midnight as you might wonder whether your transaction is successful or not because you cannot immediately login again after that sudden shutdown, to find out.
Well, I managed to apply for Westports' IPO but am under no illusion that I can easily get it because the portion for retail investors is rather small. My better half has also applied and so we are waiting to see whose luck is better. While I went through an anxious time, Jeff applied his through ESA in less than two minutes at HSBC. Come to think of it, I will now transfer most of my liquid fund to Maybank to facilitate my e-share activities as I prefer an online application as it can be done anytime (except around midnight!), at home and definitely is time-sparing for a busy professional.
Good luck to my blog readers who are in the same shoes as I am for Westports IPO!
I was late in finding out about Westport's. I quickly read the prospectus and have a look at their website and note who are the people owning and managing this business and the reasons they are going public. My utmost concern is when a company is raising fund from the public to pay for their debt. I will keep away from such an IPO unless their fundamentals are strong. I will also keep away from an IPO of a newly established company whose business has too many competitors and risks: the main reason I gave AirAsia X a Big X.
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| I like the first two words: PROVEN and TRUSTED |
Some people are worried about the above point simply because we have been told umpteenth time if the company's insiders are disposing their shares, we should be aware as the business might not be doing well.
I am taking a contrarian view with regards to this company and have decided to apply for their IPO. I am also comfortable with the cornerstones investors and their lock-up period of six months.
As I only knew about this IPO on 19 September the date of its launching, I was hard pressed trying to scramble the fund as the bulk of it is in Unit Trusts and as luck would have it, my HSBC ATM card has just been changed to a new one which is yet to be linked to my CDS account! And the closing date of this IPO application is on 27 September which effectively only left me with five banking days and it takes three days to activate my new ATM card to enable its ESA (electronic share application) function.
To complicate matters, the ASNB agent informed me that if I were to redeem my requested units she needed to issue a cheque which could only be cleared by the bank in three days. And on top of all this, I don't really have much time to go to all these places to complete the required transactions.
Then I thought of my banker at Maybank, good old Agnes. My SMS to her was simple: could I transfer some fund from PNB unit trusts directly into my account at the bank? Her reply was a relief: yes, no problem! And so I proceeded to Maybank at midday Friday to deposit some cash for topping up and then performed the PNB-Maybank transfers and in less than 15 minutes I was ready to apply for the IPO online through Maybank's internet banking facilities. How is that for a fast solution? No need for the inconvenient ESA and I could apply after-hours at my leisure at home.
Of all the time, I decided to go online just before midnight to perform the online application. It's another experience for me as this was my first time to do so because all my other IPO applications were through ESA. The five steps are easy enough and when you wrongly type in the number of applied units there is always the "go back" alert. Just after I printed my "successful" receipt at 11.57pm, the system automatically shutdown with a busy signal screen coming up! Then I realised that there must be a system which automatically checks the internet banking facilities just around midnight before the next day's operation.
And so it is not advisable to do internet banking especially when you are transferring fund around midnight as you might wonder whether your transaction is successful or not because you cannot immediately login again after that sudden shutdown, to find out.
Well, I managed to apply for Westports' IPO but am under no illusion that I can easily get it because the portion for retail investors is rather small. My better half has also applied and so we are waiting to see whose luck is better. While I went through an anxious time, Jeff applied his through ESA in less than two minutes at HSBC. Come to think of it, I will now transfer most of my liquid fund to Maybank to facilitate my e-share activities as I prefer an online application as it can be done anytime (except around midnight!), at home and definitely is time-sparing for a busy professional.
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| We all need it! |
Good luck to my blog readers who are in the same shoes as I am for Westports IPO!
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3 comments:
hi good analysis. I just get my CDS account and would like to apply for this IPO too. I do have maybank account and M2U, what i need to do too apply this IPO?
good info. i like your blog. Can I link to your blog? Thanks. Mine is tzlcl.blogspot.com.
Dear Admin
If you have internet banking facilities with Maybank just go online and apply under Investment- e-Share. If not you can apply through your Maybank ATM. Make sure you have your CDS account number. Today 27 September 2013, Friday is the last day of application. Closed at 5pm. Wishing you good luck.
No problem you can link to my blog.
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