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CMAis now officially CMI (Cannot Make It) :(
$2.35 is more reasonable....hee
0118 GMT [Dow Jones] NEW LISTING: CapitaMalls Asia (JS8.SG) +6.6% at S$2.26 on firm volume (most active on SGX) vs S$2.12 IPO price but struggling to head above opening price of S$2.30. "All the institutional investors have already secured their shares. The float is big enough for everyone so there's not much big upside for the share price," says trader at local brokerage. Still, foreign house dealing director says performance commendable given current market conditions; "it's one of the interesting plays for many funds who're trying to position themselves during this quiet time in the market. It's the only proxy for access to 86 malls in Asia." If stock manages to clear S$2.30, orderbook quotes hint next resistance at S$2.35. (FKH)
CIMB report :
CapitaMalls Asia Ltd - Initiate with OUTPERFORM, target price S$2.77, pegged at parity to
RNAV, 31% upside from the IPO price of S$2.12. CMA’s franchise in operating retail malls in
Singapore is second to none. If CMA is able to replicate this in China, we believe further
upside to RNAV could be possible in the mid-long term. Risks are longer-than-expected
gestation period for its assets and volatility in the debt and capital markets.
Public Offer 95 million shares plus 11.652 million reserved shares for directors, management, employees and business associates constitute about 10% of total IPO as another one billion shares is under placement tranche to institutions. Thus, there is tendency for investors to hold this counter long term as 90% are held in the placement tranche. Opening price on first day is $2.30 and so far about 75 million shares traded. Likelihood of prices moving any higher as traders start to liquidate their positions in order to take profit in order and repay their loans since this is a $2.12 counter?