Courts Asia

(14-10-2012, 04:15 PM)KopiKat Wrote: Barring any unforeseen circumstances, we expect our first Indonesian store to have a retail area of up to 120,000 sq. ft. We previously had operations in Indonesia prior to the Restructuring Exercise and had closed down these operations as part of the Restructuring Exercise so that the business could focus on the growth in the core markets of Singapore and Malaysia which had already achieved critical mass and presented greater potential upside. While our Indonesia business was profitable for most of PTCI’s history, PTCI’s total revenue accounted for less than 5% of our Group’s total revenue prior to our decision to discontinue our operations in Indonesia in 2009.

Yes, they had tried but not able to survive. I hope the experience is sufficient for their 2nd Indonesia venture

Courts Asia closed it's 1st day with $0.785 over volume of approx 35 mils shares. Barely 2% over it's IPO price of $0.77

Mr Market is not too optimistic on this counter.

(15-10-2012, 05:12 PM)CityFarmer Wrote: Courts Asia closed it's 1st day with $0.785 over volume of approx 35 mils shares. Barely 2% over it's IPO price of $0.77

Mr Market is not too optimistic on this counter.

Courts business does not seem attractive at all. But yet people are still doing the IPO chase

The share price drop back to IPO price of $0.77, with the highest volume of 8.5 mil shares. Total volume today is 10.2 mil shares

Courts needs to court more investors. The ball is in its court now.

(17-10-2012, 05:39 PM)CityFarmer Wrote: The share price drop back to IPO price of $0.77, with the highest volume of 8.5 mil shares. Total volume today is 10.2 mil shares

Stabilizing Action
4,939,000 @ $0.765 to $0.77

0.725 as now. volume more than 7 million shares.

seems market is not convinced by its valuation, either.

(17-10-2012, 08:13 PM)KopiKat Wrote:

(17-10-2012, 05:39 PM)CityFarmer Wrote: The share price drop back to IPO price of $0.77, with the highest volume of 8.5 mil shares. Total volume today is 10.2 mil shares

Stabilizing Action
4,939,000 @ $0.765 to $0.77

(18-10-2012, 10:30 AM)freedom Wrote: 0.725 as now. volume more than 7 million shares.

seems market is not convinced by its valuation, either.

Total available for Stabilizing (Pg3) = 17,159,000 Shares
Looking at the nos. used yesterday and the current price, looks like going to be used up very fast....

(17-10-2012, 08:13 PM)KopiKat Wrote:

(17-10-2012, 05:39 PM)CityFarmer Wrote: The share price drop back to IPO price of $0.77, with the highest volume of 8.5 mil shares. Total volume today is 10.2 mil shares

Stabilizing Action
4,939,000 @ $0.765 to $0.77

Hmmm, if the share price keeps falling, does that mean that the stabilising manager will lose money despite earning fees for underwriting the IPO?

(18-10-2012, 12:09 PM)money Wrote:

(17-10-2012, 08:13 PM)KopiKat Wrote:

(17-10-2012, 05:39 PM)CityFarmer Wrote: The share price drop back to IPO price of $0.77, with the highest volume of 8.5 mil shares. Total volume today is 10.2 mil shares

Stabilizing Action
4,939,000 @ $0.765 to $0.77

Hmmm, if the share price keeps falling, does that mean that the stabilising manager will lose money despite earning fees for underwriting the IPO?

If my understanding is correct, they'll make more $$ if they buy at below IPO price for the stabilizing action. Here's my understanding of how this works,

When an IPO is over-subscribed, the underwriters will exercise their Over-Allotment option ie. borrow some units from the vendors to over-allot (ie. more than the original nos. of shares) to successful IPO applicants.

The same nos. borrowed from the vendors will now be equal to the nos. that'll be used by the Stabilizing Manager (they changed their hat) to buy from the Open Market (upon listing) to provide price stabilization (to prevent it from falling too much and too fast). After the stabilization period (usually 30 days), whatever they'd bought (up to the limit borrowed) will be returned to the vendor.

So, if they'd managed to buy from the open market at below IPO price (no stabilizing required if above IPO price), they'll make the difference. If they're unable to buy any or all (the borrowed units) from the open market, their agreement with the vendor is that there's no need to return ie. Vendor happily have a smaller stake in the IPOed entity.

So, looks like a sure win situation for the Underwriter cum Stabilizing Manager to me... as long as they're able to place out all units. Now, we wonder why underwriters are so eager to create and package new 'instant' companies for IPOs... as long as they can create a compelling story for suckers oops.. I mean investors, to rush to grab such IPO units...