IPOs nowadays are different from IPOs of the 1980s n early 90s. Those good old days, IPO price is determined the Securities Commission which usually price it at low PE ratio. I remember those exceptional IPOs with high price are Nestle priced at RM5-20 n Resorts World in range above RM4-00.
Thus, if one succeeds in getting the shares, he is bound to profit.

But now, the IPO price is determined by the Offerors who usually mark their IPOs at market price. So, obviously there is not much or no money to be made on listing day unless it is perceived to be a quality share.

Since most of the public utilities are already privatised, there is no big quality IPOs in the near future. The government has no intention to list Petronas.

The Maxis IPO is an exceptional. Most coming new IPOs will not attract much interest.

This post has been edited by Oracles99: Nov 12 2009, 11:43 PM

Considering that its EPS is nothing to shout about. Around 10 cents. RM2 implies a PE ratio of 20.

From the Star today...........“Undoubtedly, JCY is a great company operating in a steady growing industry (but) in terms of valuation of the IPO, we do not think there is much premium left for potential subscribers in the near term,” said OSK Investment Bank in an IPO note.

JCY's debut on the market today is a grim reminder of changing times. As the companies going listing tried to extract maximum price for their IPO, there is really not left for the IPO applicants.
The time will come when nobody will be applying for IPOs n then losers will be the companies n investment banks.

This moment of truth has probably arrived... for those applying for IPOs, be selective.....

Well, try your luck. If the contagion in Europe spreads, the market may not have upside. maybe you can buy it at IPO price instead of applying. After all IPOs nowadays are priced at market price.

What I mean is when we apply for IPOs, we are actually paying the market price which means there is little upside. So if you missed the chance of applying, you may still be able buy it in the market at the same price or even less than what you pay when applying. Considering the Greece contagion may spread, we can try our luck.

In the 1980s, the prices of IPOs are determined by The Securities Commission (are you already in the market at that time?). And all the IPOs are undervalued. So anyone who gets the shares are bound to make a lot of money. A few of my friends at my workplace made tons of money from IPOs every month because they had big capital.

NST reported IPO price to be around RM5.10

whether it is worth applying, use Titan Chemical as guide

This post has been edited by Oracles99: Oct 9 2010, 11:34 PM

You are absolutely right. Nestle's IPO in the 1980s at RM5.20 fetched RM9-30 on its first day of listing. Sadly, I sold at RM9-30

Even turkeys will fly