Much has been written about how unfair it was in the Maxis relisting IPO shares allocation. To recap the horror story, existing Maxis shareholders (that’s Ananda Krishnan and his geng) agreed to give up 30% of their share for the purpose of the IPO of which a whopping 27.67% was to be allocated to institutional investors while Average-Joes were allocated a merely 2.33%. After the book-building exercise Maxis Berhad has set the price of the IPO at RM4.75 per share while institutional at RM5.00 a share – raising RM11.2 billion from the 2.25 billions shares to be floated in the local stock market this coming 19 Nov 2009.
Now, many are crying over the small retail portion allocated from this IPO, something which is understandable considering that it’s not everyday you have the opportunity to be part of the minority shareholders of such an established company. Many former Maxis shareholders still remember the huge profit they made (RM15.60 a share during Maxis privatization in June 2007) from their initial investment in Maxis’s first IPO hence they expect the same may happen from this second round of Maxis IPO.
Well, it’s hard to imagine Maxis were to re-privatise again in the near future but anything is possible considering political climate in Malaysia. If it’s alright to broker top judges’ appointment, kill innocent people before pushing them out of the building, plunder the nation of billions of dollars in project such as PKFZ and whatnot, you can’t blame investors when even local business owners lost confidence and relocated their monies elsewhere, what more with foreign investors. Hence it was hope that Maxis relisting will bring back the foreign investors’ confidence (and their hot money) into the country.
Anyway if you didn’t’ get any Maxis IPO shares due to the limited retail portion, do not get too sad and start crying like a baby who losses his / her pacifier. As have mentioned many times, Maxis today is a different animal and the upside is not the same as when it was listed the first time. Do I really have to re-mention the word “saturated” again? Sure, non of Maxis top management will tell you this and they will keep telling you there’re more spaces of growth (otherwise who in their right mind would buy their shares?). Underwriters told you the same story as if Maxis is another Apple Inc. (Nasdaq: AAPL, stock) and Ananda Krishnan is Steve Jobs. If the underwriters didn’t tell you such fairy tales then they need to take up the remaining unsubscribe shares so it was their job to tell you so.
Of course there’re still some upsides to the initial IPO price of RM4.75 upon listing because people who didn’t manage to get a single share would be chasing the stock because they’re buying for its dividend. The stock price may go up to RM6.00 a share easily because institutional investors are not about to sell on the first day of listing, at least not the so-called cornerstone investors who had promised not to sell within 6-months from the listing date. Funds such as EPF (Employees Provident Fund) and PNB (Permodalan Nasinal Berhad) who relies heavily on dividend stocks as their return to the members will not sell and this will contribute to price surge should retailers decide to chase the stock further.
Maxis IPO price of RM4.75 also means it was priced at 15.83 multiple times of the company financial year 2009’s 30 sen EPS. At RM6.00 a share the stock will be trading at an EPS of 20 times and this is expensive considering the saturation in the mobile telecommunication sector. The local and global stock markets are currently at the junction whereby the economy recovery is still questionable. Hence if you were to chase the stock you may be buying at the highest. Don’t try to buy for the sake of buying or out of revenge just to show that you’re also belong to the Maxis shareholders group. Take your time and wait for the right time to buy at a later stage (price consolidation). Hey, it could be blessing in disguise because you didn’t get a single share out of Maxis IPO. Who knows, maybe Maxis share price will not venture too far away from its’ RM4.75 a share. If you’re too loaded with cash why not go and invest in stocks such as Apple Inc.? Stop sulking and invest your hard-earned money another day.
Other Articles That May Interest You …
- Maxis Relisting – The Race for the Pathetic Limited Shares
- Maxis is Coming (back) to Town but are Investors Excited?
- The Rise of CELCOM Empire, Tales You Should Know
- It's RM15.60 for Your MAXIS Shares - Would You Sell?
- MAXIS Delisting – Good News for DIGI and TELEKOM Stocks
- Maxis Second Attempt To Buy India's Hutchison Essar
Stumble it!
However we’re no longer living in the age of manufacturing, at least not United States, a country which inherited such business model when one-third of their workforce were in the manufacturing. Of course the new manufacturing hub now is China but in the meantime what shall the U.S. men and women who lost their jobs do? With automation, technology and the shift in the services sector as the new way of doing business, employers may just have found the excuses of not hiring as many as they did before the recession. Hence it's interesting to watch the next month's jobless rate data.
There’s no doubt that the newly appointed deputy MCA president Liow Tiong Lai belongs to the 
It’s not easy to find someone like Ong Tee Kiat who was willing to expose such scandal, regardless of whatever reason he did that in the first place. On the other hand there’re thousands of MCA politicians who are willing to become puppets as long as there’re millions to make. It’ll be interesting to see if Ong can still bark about PKFZ issue now that the scandal is slowly swept under the carpet after taken over by Najib’s other boys. The next episode should see how Chua Soi Lek tries to wrest back his deputy President post from the traitor Liow Tiong Lai. But with Registrar of Societies (ROS) adopting “hear no evil, see no evil” over Chua’s status, Chua and Ong needs to work together to get rid of traitors from the third force team.
It’s no secret that the 78-year-old Teh Hong Piow has a “close model friend” from East Malaysia who was crying over a business deal gone sour but finally managed to get the sole Malaysian franchisee rights to the prestigious Ford Supermodel contest. Hmm, wonder who will be her sponsor for the contest *grin*. It’s also a well known fact that billionaire Teh Hong Piow was hospitalised for so-called minor operation recently. But not many know
From a mere S$130 a month working as a clerk in Oversea Chinese Banking Corp (OCBC) in 1950 to becming Malaysia’s third richest person with an estimated RM8.2 billion in wealth, it is sad to note that none of Teh Hong Piow’s four children (three daughters and a son) will continue to build or at least maintain the empire built more than four decades ago. Although Teh Hong Piow has his most-trusted man, Managing Director Tay Ah Lek, in position to continue the banking business after he’s no longer around, the most likely scenario is a 
With the current political landscape it’s easy to point the finger at none other than tycoon Quek Leng Chan, the founder of Hong Leong Group Malaysia which owns Hong Leong Bank. Prime Minister Najib’s fourth brother, Mohamed Nazim Razak, is the non-executive director of Hong Leong Bank Berhad (KLSE: 
Nevertheless Quek is no ordinary businessman so expect him to put in all his efforts in acquiring the best managed bank with cheapest possible offer-price. Furthermore political advantage is on Quek’s side hence there should not be any hindrance from the Central Bank. The biggest question is whether the current Najib’s administration would allow Hong Leong Bank to become such a giant (if merged with Public Bank) that it would undermine government-linked-banks such as largest lender Malayan Banking Berhad’s (KLSE: 
It would be interesting to see if other companies could follow the same sentiment because it would certainly help Dow Jones’s journey into the 10,000-level territory. In any case if there are negative signals from big-boys’ earnings it could easily reverse the current bullish trend. During current stage it’s always a wise move to take some money off the table if your portfolios are in profit because it’s a fact nobody can say for certain the U.S. housing market and unemployment has bottomed.
