I liked this comment in one of the forums, "only pondans buy IPOs"... lol.
Institutions indicative price range of between RM1.66 and RM1.80. Individual investors RM1.70 per share or 95 per cent of the institutional price.
Opening of application: 15/06/2011
Closing of application: 21/06/2011
Balloting of applications: 23/06/2011
Allotment of IPO shares to successful applicants: 29/06/2011
Tentative listing date: 01/07/2011
Its a big issue with 774m shares and IPO priced at 11x. Public issue is decent at 160.7m to institutions and 71.5m to the public.
Book order stands at RM1.5bn. Its a fabricator, and one of the better ones in the business. FY 2009 RM94m pretax profit, FY2010 RM126m pretax profit. For FY2011, it is forecasted to make RM145m.
Its a master in the Middle East, esp Qatar and UAE. Not many realised that Eversendai did important work for the Twin Towers, KL Tower and KLIA. The fact that Qatar will be hosting World Cup in 2022 bodes rather well for the company.
I think its a safe bet as RM2.00-RM2.10 should be a nice level for trading. But would need better flow of updated research as bulk of earnings are from overseas, till then it would be hard to hold for the long term.
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