From what I gather, the main reason behind the whopping increase in price is that the IPO price of RM0.38 is too low and rediculos. It doesn't reflect the true value of Nationgate at all.
But it will be fortunate for the lower and middle income groups who subscribe and try their lucks striking 1 or 2 lots of share like winning a lottery.
Let me quote an example to clarify my argument. CTOS with more 2 billion shares but its net profit was much less than that of Nationgate touched a debut of more than RM1.50 the first day.The reason is because the IPO price was fixed at RM1.10 at that time.
NationGate breaches RM1 mark, jumps 11% Sufi Muhamad / theedgemarkets.com
January 13, 2023 10:42 am +08 NationGate breaches RM1 mark, jumps 11% -A+A KUALA LUMPUR (Jan 13): NationGate Holdings Bhd’s share price breached the RM1 mark and jumped 11% in early morning trade on Friday (Jan 13), merely a day after a firm start on the ACE Market of Bursa Malaysia.
At the time of writing, the stock was up five sen to RM1.05 a share, with 89.96 million shares done. The stock earlier rose to a high of RM1.11.
The electronics manufacturing service provider debuted on the ACE Market on Thursday, closing at RM1 against its initial public offering (IPO) price of 38 sen — a premium of 163.16%.
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READ MORE Its trading volume was 654.92 million, while its market capitalisation stood at RM2.07 billion, making it the largest IPO on the ACE Market to date.
UOB Kay Hian Securities on Wednesday (Jan 11) initiated coverage of NationGate with a "buy" rating at 38 sen, and a target price of 98 sen, and said the stock was listing at an undemanding 13.8 times 2021 price-earnings.
The research house said it sees multiple legs of growth that can supercharge a three-year revenue/core net profit compound annual growth rate of 24%/30%, premised on cross value-chain integration, trade-diversion related supply chain reconfiguration, and aggressive expansionary plans.
“While NationGate can offer high-mix low-volume and low-mix high volume production set-ups, its strategic diversification towards recession-proof segments has borne fruition, especially amid the current economic downturn," the research house added.
Nobody knows who are the buyers and sellers. Nobody knows what they are thinking too .
As long as I buy within my means and within my budget, why should I worry ? Otherwise put the money in the banks and earn a few per cent interest per annum lah . Which is better and safer ?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
chon99
1,510 posts
Posted by chon99 > 2023-01-12 20:10 | Report Abuse
https://www.klsescreener.com/v2/news/view/1096383/%E9%A6%96%E6%97%A5%E4%B8%8A%E5%B8%82%E6%94%B6%E5%9C%A8%E6%9C%80%E9%AB%98%E4%BB%B7%E4%BD%8D-nationgate%E9%A3%991-63%E5%80%8D