Hi RO player,

Where you read TP 2.00 ??

Maybank Investment Banks buys 19.5m AirAsia X shares

KUALA LUMPUR: Maybank Investment Bank Bhd bought 19.5 million shares of AirAsia X Bhd on Wednesday under the price stabilisation mechanism.
Maybank IB, which is the stabilising manager, bought the shares at RM1.25 each, it said on Thursday.
Shares of AirAsia X closed unchanged at RM1.25, which was the institutional price.





Attached File(s)
 FAQ_PriceStabilization_080111.pdf ( 30.05k ) Number of downloads: 38
 PS_Reg2008_English.pdf ( 61.52k ) Number of downloads: 24

learning is for everyone, i cant learn by my ownself.

I wonder this IPO hv price stabilization mechanism, some don't have like ASTRO.

http://www.thestar.com.my/story.aspx?file=...ness%2f12216640

PETALING JAYA: Astro Malaysia Holdings Bhd's share price fell further on pessimistic market sentiment in regards to expensive valuations of the stock.

Yesterday, Astro shares dipped 6 sen to RM2.71 at 5pm with 72-odd million shares changing hands. This was a milder sell-off of its shares compared to on Monday, which saw a 23-sen plunge to RM2.77.

“Monday's price adjustment was a big shocker to the market. It was a big correction in price. Many short-term investors via the investor and retail tranches had sold the shares as it was not performing as well as expected.

“Although a bit weaker, if valuations continue to shrink, Astro will get closer to the end of the trend,” a banker close to the initial public offering (IPO) exercise said.

He added that the different structure in the lock-up period for cornerstone investors did contribute to the share's performance thus far.

“Typically, the lock-up period for cornerstone investors would be six months. IHH Healthcare Bhd was the first IPO not to be 100% locked-up,” he said.

In the case of Astro, the first 15 million shares could be freely tradable, he said.

“With the share price drop on Monday and yesterday, it could be that those bigger-sized fund houses are cashing out as there is no lock-up period for cornerstone investors,” Mercury Securities analyst Jack Chan reiterated.

In contrary to other research houses, Mercury Securities has put Astro at a fair value of RM2.85, below its RM3 IPO price.

Affin Securities has pegged Astro's fair value at RM3.12 while ECM Libra Research set a target price of RM3.09. However, both research houses have yet to revise their reports post the IPO exercise.

Chan added that Astro's long-term future was quite uncertain as it ran the risk of losing its exclusive rights to the English Premier League license, which he said was pivotal to Astro's business.

“Although it faces competition from other bidders, I think it should be able to beat other bidders as it has the expertise in the pay-TV market that others don't,” he said.

However, Astro also needs to address the trend of people migrating to Internet-protocol TV (IPTV). “So, despite dominating the pay-TV scene, investors are not so sure if Astro will continue their pure dominance in the IPTV scene,” Chan said.

While there have been queries and concerns over the fact that the Employees Provident Fund (EPF) is not a major investor in Astro, the banker dismissed them.

“Bumi Armada Bhd didn't have the EPF as a cornerstone investor at its IPO, yet it did well,” he said.

Long-term investors would probably come in at a later stage, he said. “With a deal of this size, and having been marketed globally, to pin the fault to EPF is just too short-sighted,” he added.

However, Chan said: “Unlike other mega IPOs, there is less of a stabilising factor for Astro's share price since fund houses like EPF is not on board. Although its fundamentals are good, it is all about the pricing.”In regards to dividend yield, Chan opined that Astro is not very attractive to dividend-seeking investors, as its dividend yield is expected to hover between 2% and 3%.

“Astro has also mentioned that it will be incurring higher costs in the next two to three years. That could lead to lower EBITDA (earnings before interest, tax, depreciation and amortisation) figures.”

He added that many fund managers were pessimistic about the stock way before the IPO due to its “pricey valuations”.

thank gark & zitis for clarification.