Posted by Lan Yong How > 2015-05-25 08:53 | Report Abuse

Thank you very much for sharing...you are a great guy.

Posted by murali > 2015-05-25 08:59 | Report Abuse

Thanks for the sharing. I learnt something new today.

Posted by Christensen > 2015-05-25 09:01 | Report Abuse

Is it matter

Posted by duitKWSPkita > 2015-05-25 10:08 | Report Abuse

Thank you very much Ks55, think tis is my first time to chat with you. Nice to know you. I read ur comments always. Let me answer in below

Posted by ks55 > May 25, 2015 09:45 AM | Report Abuse

A few questions to ask :

1. Over allocation is it prior to listing? If over subscription is 14x, you mean Maybank (or the underwriter) already issued additional 228m shares to the public before lsiting? It will amount to addition offer with a borrowing script (call option) from Malakoff.
ANS: over subscription is just a marketing gimmick. Insti can arrange their runner to chase the IPO ballot. Not 228 million if based on my example at above. It is up to the max of 15% which is 45 million additional shares.

2. Or is it only after listing, Maybank is permitted to sell up to 228m if the share price above IPO? Again it is shorting with call option.
ANS: No matter up or low against the OFFERING PRICE(aka IPO fixed price)they can do CALL or SHORT also.

3. If share price fall below IPO price, Maybank has to buy up to 228m share within 30 days after listing according to stabilizing agreement.
So who will finance the purchase? Malakoff? Or Maybank itself?
Who will actually own those share purchased under the stabilizing mechanism?
Can Maybank pass the share back to Malakoff as put option?
What happen if the price is below IPO price at the end of stabilizing period, and amount of share purchased still fall short of 228m, is it a breach under stabilizing agreement?
ANS:
Part 1: Not necessary must STABILIZE it. See AAX case, Tony discouraged it to be stabilized as he rather wanted to see real market response. Underwriter(Mayb) will purchase and indirectly Underwriter use the OVERSOLD(eventually go to IPO issuer's EQUITY account) money to finance it. So, BANK tak rugi in this particular transaction. Because Underwriter use different account in the beginning so the BOUGHT shares upon stabilization will be debit-credit to that company. In terms of mass-balance it is same. Because they just use OVERSOLD 15% fund and it wil not affect the initial IPO planned figure.
Part 2: Case to case basis. Perhaps in most of the case like FACEBOOK for instance after stabilization price still far below IPO. Bear in mind that, when come to SECONDARY market (after listing) the performance of share price will affect Underwriter more than IPO company. Because IPO company already obtain what they want, but underwriters need the GOOD PERFORMANCE to get the next business in equity market. So, I must say the method and strategy to suppress the market supply(SELLing) is rather important. Some like to intervene on first day to avoid BREAL CALL while some like to counter attack when SELLING VOLUME is low.
Again, it is a big topic here to be discussed.

Hope my clarification help

TQVM if you can clarify the above doubts.

Posted by duitKWSPkita > 2015-05-25 11:08 | Report Abuse

Hi SOP2,

Good morning. How are you?
Futures? No... was busy in everyday's LIMIT UP counters.

You see see wat counters recently?

Posted by SOP2 > May 25, 2015 10:57 AM | Report Abuse

1888.88 ? duit KLCI kita !!! you made money form future index ?

Posted by duitKWSPkita > 2015-05-25 11:09 | Report Abuse

Hi SOP2,

Good morning. How are you?
Futures? No... was busy in everyday's LIMIT UP counters.

You see see wat counters recently?

Posted by SOP2 > May 25, 2015 10:57 AM | Report Abuse

1888.88 ? duit KLCI kita !!! you made money form future index ?

Posted by duitKWSPkita > 2015-05-25 12:00 | Report Abuse

SOP2,

Tried 5 times also cant post. My bad.

Wishing you a wonderful profiting program. Hope you can perform your own research rather than follow the banker house's calls. They are not "disclose" accurate info on the 11MP matters.

Must not rush to buy. I have no comment on your stock picks until I done the thorough check. So far "U" is acceptable ONLY.

Posted by duitKWSPkita > 2015-05-25 12:08 | Report Abuse

网络有问题。。。。

刚才我马上回复您。。。就是传不过。。。。

您的股好好分析。。。。。加油了。。。。。。。。我也是正在学习呢。。。

Posted by duitKWSPkita > 2015-05-25 12:18 | Report Abuse

1

Posted by jc2015 > 2015-05-25 13:04 | Report Abuse

Duit thanks for the info

Posted by Fardar Chye > 2015-05-25 13:38 | Report Abuse

钱兄，阅过了。需要更多时间消化和实践查阅各别案例..在此先谢过

Posted by duitKWSPkita > 2015-05-25 14:05 | Report Abuse

Thanks for reading Murali, Lan Yong How and jc2015...

Fardar.....thanks for reading. Yup... take it slowly to understand the mechanism then we only can dance with the UNDERWRITER....

Under Thick Black Chapter 4. 厚黑学本领：与庄共舞！

Posted by Lan Yong How > 2015-05-25 15:45 | Report Abuse

Hi, DUIT, you are my beacon of light in this stormy sea.I have been following all your inputs in this forum.I learnt how they do the book building of the IPO,BUT today I learnt something more important from you.

Posted by Fardar Chye > 2015-05-25 16:23 | Report Abuse

Dear Duit,

We do not need to prove to the world. People who knows, they knows. People who dunno, they will seek to understand. Those who dunno and do not seek to understand does not deserve to be entertained because they are most of the time waiting for luck. Even Steven Gerrard lost his final game at 6-1, but I still think he is a great captain of the team.

Best regards,
Fardar

Posted by Fardar Chye > 2015-05-25 16:49 | Report Abuse

别人说duit撞墙壁，
我说.........

u wan like that baru can understand ha...

Posted by duitKWSPkita > 2015-05-25 20:58 | Report Abuse

Dear Yong How,

What is your something? May I know?>

Posted by Lan Yong How > 2015-05-26 11:06 | Report Abuse

Hi, DUIT, this something is what you write about on over-allotment and stabilization of IPO.I realise that to be able to make money in bursa we need to learn the tricks of the trade and I really thank you for sharing.Yesterday I learnt how to do bottom fishing when you set out the rules in another forum.

By the way I made money from YSPSAH and want to let you know that I made donation tO MUDITA orphanage,offering of robes to the monks on occasion of Wesak day,donation to the Nepalese Disaster Fund.

May I be blessed to receive DUIT'S weekly handouts @ mollyganz48@hotmail.com

MAY ALL BE BLESSED WITH HAPPINESS AND PROSPERITY.