IPO   

CapitalMalls Asia

des khor, that's the way how businesses are run .Arithmetical calculation u are

correct.Investors subscribe for the IPO, they are buying HOPE. Hoping the price

will go above IPO  price when listed

 

 

 

 

des_khor      ( Date: 18-Nov-2009 10:37) Posted: Got... I ever saw a auntie laugh all the way out from Singapore Pool and continue to walk to next door POSB... I guess she kenal TOTO... niuyear      ( Date: 18-Nov-2009 10:32) Posted: Hardly see anyone walking to the bank and laughing.  hahaha!

 

Had u all ganna anything?

 

YES, this one sure make money on debut.  So lets huat together.

 

Has anyone tikam this one at the ATMs yet? Closing on monday and start trading next Wed.

If alloted successfully, sure can money on debut. Go tikam and do a STAG for a quick profit.

Do not buy high-high on the market, otherwise can hold long-long leow.

 

 

Got... I ever saw a auntie laugh all the way out from Singapore Pool and continue to walk to next door POSB... I guess she kenal TOTO...

niuyear      ( Date: 18-Nov-2009 10:32) Posted: Hardly see anyone walking to the bank and laughing.  hahaha!   des_khor      ( Date: 18-Nov-2009 10:00) Posted: $2.12 - $1.36 = profit $0.76.... Capitaland earn big time time man.... laugh all the way to the bank!

 

Hardly see anyone walking to the bank and laughing.  hahaha!  

des_khor      ( Date: 18-Nov-2009 10:00) Posted: $2.12 - $1.36 = profit $0.76.... Capitaland earn big time time man.... laugh all the way to the bank!

 

Thanks for the clarification that Capitamall Asia does not operate as a REIT, but it is the retail mall business unit of Capitaland. Capitaland owns around 70% of Capitamall Asia. Capitamall Asia in turns owns around 30 to 40% of Capitamall Trust and CapitaRetail China Trust. It's main aim is for growth by acquiring Asian retail properties and maybe dumping the properties to it's REITs (Capitamall Trust and CapitaRetail China Trust). It is quite a large unit since it has around 86 retail properties in China, India, Singapore and some other Asian countries, so it offers a compelling growth story. Just be wary not to overpay for any business. Growth and value is closely knitted together. Overpay for a business even if it has a compelling growth story and one will still suffer from diminished returns from the investment. Underpay for a mediocre business with lousy growth and the investment is not a value buy anymore since there is no value in seeing growth. Growth in returns and value are dependent on each other and not mutually exclusive. I think the listing price should not be an undervalued price since it is offered at 1.55 times above it's book value. Neither is it grossly overvalued. It is still up to each investor's investment objective and judgment on whether this is a potential good investment candidate at current offered IPO price. It is definitely a large business to look at considering the sheer number of retail properties under it spaning across various Asian regions.

joshlai86      ( Date: 18-Nov-2009 09:30) Posted: I think most people in this forum have a misperception that Capitamalls Asia is a reit, it is NOT a reit. It is a growth company, you cannot compare it to Capitalmall. CMA does not pay our dividends like capitamall. They have different risk profiles for different investors. If you believe in the China growth story and dont mind low dividends, then CMA is the investment for you. If you prefer dividends and a Singapore centric stock, then capitamall is for you. The price of $2.12 is justified, CMA offers a much more compelling investment opportunity, as it is diversified and offers huge growth potential through its china malls. jeremyow      ( Date: 18-Nov-2009 03:05) Posted: Let the REIT run it's business for sometime and if it proved to be really better than other REITs around, collect it at a suitable price. Usually, IPO listing prices for most newly listed companies is overvalued. So, the decision is up to oneself. Join the crowd to subscribe for a price upswing speculation or wait patiently to assess the REIT and wait for a more attractive time to invest in it if it really proves itself to be a good investment candidate?

 

$2.12 - $1.36 = profit $0.76.... Capitaland earn big time time man.... laugh all the way to the bank!

 

I think most people in this forum have a misperception that Capitamalls Asia is a reit, it is NOT a reit. It is a growth company, you cannot compare it to Capitalmall. CMA does not pay our dividends like capitamall. They have different risk profiles for different investors. If you believe in the China growth story and dont mind low dividends, then CMA is the investment for you. If you prefer dividends and a Singapore centric stock, then capitamall is for you. The price of $2.12 is justified, CMA offers a much more compelling investment opportunity, as it is diversified and offers huge growth potential through its china malls.

jeremyow      ( Date: 18-Nov-2009 03:05) Posted: Let the REIT run it's business for sometime and if it proved to be really better than other REITs around, collect it at a suitable price. Usually, IPO listing prices for most newly listed companies is overvalued. So, the decision is up to oneself. Join the crowd to subscribe for a price upswing speculation or wait patiently to assess the REIT and wait for a more attractive time to invest in it if it really proves itself to be a good investment candidate?

 

Local SG Capitamall is S$1.67 only, why pay S$2.12 for Capitamall Asia? Is Singapore business activity below average level of Asia?

 

Let the REIT run it's business for sometime and if it proved to be really better than other REITs around, collect it at a suitable price. Usually, IPO listing prices for most newly listed companies is overvalued. So, the decision is up to oneself. Join the crowd to subscribe for a price upswing speculation or wait patiently to assess the REIT and wait for a more attractive time to invest in it if it really proves itself to be a good investment candidate?

 

So may i know what's wrong that you saw in the prospectus that made you have such view, other than for the fact that $2.12 is 1.55x bv, so your rationale is that it should trade closer to bv at $1.36.

 

I think many are excited about this upcoming IPO. I too was excited for the last few months until I started scanning the IPO prospectus and my general mood go .... "What's the big fuss? IS it really that wonderful as what the medias hype it out to be? How will it perform post IPO immediately and after one year later? Will CapitalMalls Asia be needing more CASH within one year after IPO? Can it  get it  easily and cheaply from the market without pummeling its share-price?

Looking at current market mood, CapitalMalls Asia should be well subscribed and traded up above IPO price at $2.12, however, I would consider to Stag it if it can gives 20% gain on first day or after. I don't think it is wise to long this counter, STAG is a better strategy.

In the long run, that is 12 months post-ipo, I am hopeful we can all collect CapitalMalls Asia at a much reduced price ... possibly going to as low as $1.30!!!

Please do own dd.

Regards.