InvestIdeas

The IPO of Capital Mall Asia is priced at 1.5-1.7 P/B, whereas Capital Mall trust is presently at 1.0 P/B.
This is a high premium comparatively.

Anyone has any intention to subscribe and any comments on the prospects? Thanks

From Kim Eng:-

CapitaLand will raise up to $2.8 billion from selling 34.5 per cent of its retail arm CapitaMalls Asia (CMA), which has a portfolio of 86 malls in Singapore, China, Malaysia, Japan and India.

The property group said that it will sell up to about 1.34 billion shares - including 174.78 million over-allotment shares - in CMA at $2.12 apiece in an initial public offering (IPO).

This is below the mid-point of an indicative range of $1.98 and $2.39 stated in an e-mail sent to potential investors earlier this month. The conservative pricing is aimed at ensuring that the IPO trades well after it debuts on the stock market on Nov 25, analysts said.

'We have to leave some value for shareholders who subscribe to CMA,' said CapitaLand chief executive Liew Mun Leong. The IPO will be Singapore's second biggest since Singapore Telecommunications raised more than $4 billion in 1993

I'm pretty alarmed with their choice of language and hence the mgmt's mindset :-
"so that investors wouldn't be so squeezed. It will leave Capitaland with a big windfall and investors a fair reward."

LenaHuat wrote:I'm pretty alarmed with their choice of language and hence the mgmt's mindset :-
"so that investors wouldn't be so squeezed. It will leave Capitaland with a big windfall and investors a fair reward."

hi lena
sorry, can u explain why u r alarmed?
isnt ok for capland to leave some more room for CMA to go up? ie dont price their ipo too high such tat 1st day it will drop
thanks

Hi ichew
I mean this is a PR diaster. It's diplo-mess.
It's you (Capitaland) squeezing me, the investor Is that how shareholders like to be treated?
Capitaland gets the BIG versus me, the shareholder only a FAIR share.

oic
thanks for pointing this out
ya seen from this angle, it is bad PR keke

fantastic. Huge amt of shares and interest with brand.

IPO Price? I don't care.

memphisb wrote:fantastic. Huge amt of shares and interest with brand.

IPO Price? I don't care.

There were a few branded IPOs in HK where they were very greedy and priced the IPO in the stratosphere. And they all dropped on the first day !

Thereafter, the pricing was more reasonable and the last few IPOs were in the money on the first day.

Thanks for the warning my friend. Thats some sincere advise, appreciate it.

If I managed to get some, def would set my cut lost at low levels to protect myself.

I don't understand investors' appetite for this IPO. Maybe I have missed some sentiments.
Isn't this pre-investment? Why would I want to pre-invest in this ticker? Its CEO said on TV that it cost some $200m to $250m to build a mall in China. They have so many in the pipeline and these will not yield ROE until some 2 to 3 years down the road. Wouldn't I have plenty of time to pick it up?

BTW, it's 4.9 times oversubscribed. Nevertheless, good wishes to those who hope to stag successfully.