Well, is it not a blessing that troubled laden Indian operations are not included inside Maxis Bhd? Digi got sucked in India n have prepared for the worst by writing off the whole investment.

Is it not a blessing that the troubled Indonesian operations are not part of Astro's relisitng? Its former Indonesian partner is now trying all ways n means to avoid paying the arbitration sum to Astro

Businessman always like to diversify. By listing, they got back their original capital plus capital gains n by holding just 33% they are still in control of the company. I am sure when Nestle got listed in the late eighties, its owners are not cashing out.

If a majority shareholder gets out of a loss-making company you have to worry.
But a majority shareholder sells a small amount of his shares in a profitable n recession-proof company, what is there to worry?
Businessmen are known to shuffle their cards n spread their risk.
He needs to list Astro because he needs the capital to expand the business.

This post has been edited by Oracles99: Jul 31 2012, 08:11 PM

The Edge gave an indication of the IPO price - RM4.30

Kenneth Eswaran's Asian Broadcasting Network Sdn Bhd will challenge satellite TV operator Astro for a share of the local market. But a new venture would face a host of hurdles - big capital, critical mass in order to break even.
Astro with its deep pockets is able to bid for sports events. But the government has now make it a rule for such paid TV operators to share such content.
Thus ABN would also need a big capital as no one is getting any content free.

OSK rang me up this afternoon to inform me about the Astro IPO. I think the IPO is on.

Astro's prospective EPS is around 9 cents, this means it would probably declare an annual dividend of 6 cents.

Performance probably like IHH I think.

nothing alarming. It is probably due to reorganisation of Astro, whereby businesses from India n Indonesia are excluded. its prospective EPS is around 9 cents.
Maxis IPO prospectus then also revealed reorganisation losses.

I agree. if u recall Maxis IPO, even those who submitted blue forms needs to go thru' balloting n many of them were disappointed. Same for astro.

At close, Buyer 2.99................
I agree. The IPO price is in reality the actual worth of Astro as all IPOs are priced as close to the market price as possible. Some IPOs do leave some crumbs for the applicants but this one does not.
Right now no one wants to pay the price of Astro 2 years from now. But all is not lost, Astro is a long term investment.

The Chairman is saying in the short term the price of Astro is likely to be stagnant. Maybe few years from now (5 yrs ? 6 yrs?) it may be worth more.
If you read between the lines, he means that all those applicants are fools to pay the IPO price as the IPO price is in fact the actual value of Astro at present.
Well to this Chariman, I quote John Maynard Keynes, "in the long term, we are all dead".

Actually to be honest with you, Astro has already lost its monopoly. I remember the government issued a license to Kenneth Eswaran's Asian Broadcasting Network Sdn Bhd which is expected to be in operation in the middle of next year. The only saving grace is that ABN may not have the same deep pocket n connections as AK and in the long term Astro may still be the leader. This said, Astro may never be a money spinner like before.
But if you read the analyst reports, some said they like Astro because of its monopoly! I certainly agree with you, in a world of so many choices, Astro may not be a good long term investment

From The Edge, "Mercury sees Astro as low as RM2-30." IPOs nowadays are not the same as IPOs 10 years ago where it is regarded as a gold mine. In those days SC set the PE ratios for those companies which want to list. Now, the owners in collaboration with the investment banks set the price. In short, they price their IPOs to the maximum.
As for uncle Ananda, he is laughing his way to the bank. Maybe this is a valuable lesson for investors who think IPOs are goldmines.

The Edge today.

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Added on October 23, 2012, 7:38 pmBut this have no effect on Astro since it is now listed with Malaysian operations only.It is perceived to be overpriced because of the advent of internet TV and Astro may already be riding slowly into the sunset. Just as TM's fixed line have been adversely affected since the advent of mobile phones. Both have lost their monopoly but TM still have monopoly over the last mile.

This post has been edited by Oracles99: Oct 23 2012, 07:38 PM

The listed Astro includes only Malaysian operations. This news is only good for AK himself since he is on his way to collect back his money he invested in Indonesia. Mana ada "insider trading". Astro don't get even 1 sen out it.

The investment banks are trying to stabilize the price rather than pushing it up for IPOs applicants to make money as the grapes have turned sour. IPO applicants may have a good chance of getting back their capital.

Other than this, the public knows the actual worth of Astro in spite of some analyst projecting the market price with a PE ratio of 32 times. Is Astro slowing riding into the sunset with the advent of Internet TV worth that much? You judge. Even the PE ratio of the big 3 telcos are not 32 times. (around 23 times)

This post has been edited by Oracles99: Oct 24 2012, 11:38 PM

Maybe the good thing that come out of this Astro fiasco is that Tony F would leave some peanuts for the retail investor instead of grabbing every thing he can after seeing how damaging this is to Astro's image

You are right. We are hoping Tony F would leave some peanuts for us in Tune Ins IPO & refrain from pricing to the maximum. Leaving some peanuts would be good for the IPO market, Do not kill the golden goose

It reminds me of the employees of Oriental Bank Bhd in 1997/1998. Some employees who took bank loans to finance their ESOS later became bankrupt. The government stepped in and offered 50 cents for every 1 Ringgit to bail out these employees. The same predicament goes to management staff who were offered ESOS of 100 000 lots. They thought they could make a huge profit when the bank goes for listing. But the hurricane of 1997/1998 ended the show. Oriental Bank was later merged with another bank.

But what can the management of Astro do? After all, no one is forced to subscribe for the IPO. It is of common knowledge that most IPOs are priced at market price. Applicants of IPOs have voluntarily assumed the risk.

This post has been edited by Oracles99: Nov 7 2012, 11:05 PM

Hope springs eternal. Pray, Hope

as what most listed companies do, employees share option scheme. Nothing wrong with that. The clerical, sales staff probably will get peanuts while top management will get the lion's share. Same everywhere.
Some top management may have work in the company for 1 year but getting the lion's share while those non-exe staff serving for 10 years may get peanuts.
But are you sure the price is RM1-00? For employee share option scheme, they are also rules to follow.