Maybank defends buying of AirAsia X shares

Publish date: Mon, 29 Jul 2013, 03:40 PM
Maybank Investment Bank's (Maybank IB) purchase of AirAsia X shares was in line with the price stabilisation mechanism
introduced by the Securities Commision in 2008.

In a statement today, Maybank IB said the mechanism aimed to enhance confidence in the market for new issues of shares and to facilitate fund-raising activities.

"It would ensure that the demand for shares in an initial public offering can be met in an efficient manner and that price volatility during the period immediately after listing can be minimised," it said.

As disclosed in the AirAsia X IPO prospectus, Maybank IB, as the stabilising manager, can purchase up to 118.5 million shares in AirAsia X within the first 30 days from listing.

"This is as a result of an over-allotment option granted by Orix Airline Holdings Ltd and Manara Malaysia I Ltd to Maybank IB as the stabilising manager," it said.-- Bernama

Labels: MAYBANKAAX

Discussions
Be the first to like this. Showing 4 of 4 comments

Gjoey

Very poor decision. Shd buy parent share to up d price!

2013-07-29 23:53

Jared0121

maybank underwrite this IPO?

2013-07-30 09:50

vanguard

what? wrong to stablise? poor decision? wat?

2013-07-30 12:16

Jamaludin

agreed with u. let the market decides.

2013-07-30 16:09

Post a Comment