Mapletree North Asia Commercial Trust

[swakoo]

Aggregate Leverage = 43%

I personally dislike REITs with higher Gearing and at this point in time, is more skewed towards giving this IPO a miss.

And the Placement Shares are more than 30 times over-subscribed.

Amazing! 4 years ago at the height of the GFC, it was at gearing of 43% that CMT had to do a massively dilutive rights issue to improve it's balance sheet.

CapitaMall Trust to raise $1.23b through 9-for-10 rights issue

But going IPO now with same gearing level of 43% looks like very warmly embraced by placement subscribers...

[KopiKat]

Amazing! 4 years ago at the height of the GFC, it was at gearing of 43% that CMT had to do a massively dilutive rights issue to improve it's balance sheet.

CapitaMall Trust to raise $1.23b through 9-for-10 rights issue

But going IPO now with same gearing level of 43% looks like very warmly embraced by placement subscribers...

I must say the underwriters have done a very good job hyping up this IPO and generating such an over-whelming response. I can only look at it with the utmost admiration as I'll unlikely be able to overcome my fear / phobia of gearing above 40% (especially since they're not baiting me with a much bigger 'cheese' ie. Higher Yields) after being badly burnt during that crisis period....

[swakoo]

I must say the underwriters have done a very good job hyping up this IPO and generating such an over-whelming response. I can only look at it with the utmost admiration as I'll unlikely be able to overcome my fear / phobia of gearing above 40% after being badly burnt during that crisis period....

I have the exact same sentiments and experience..

They mention setting a number of records with this reit IPO - they forgot to include the one of highest gearing ever at IPO..

[BeDisciplined]

Now the market is flushed with cash US$80B/month of pumping, back then the credit marke seized up. Now lots of cashing not having any good targets to chase. Existing REITS have P/B of >1.2 and yield <6%, some even less than 5%. All the external conditions make this an attractive one

[WolfT]

Come on... this is a tikum. earn a few bucks and go have a good meal with your family.

[level13]

Come on... this is a tikum. earn a few bucks and go have a good meal with your family.

Looking at the huge interest, the question is if one is lucky enough to get it. Imagine the amt of $$ one has to throw in just to get a few lots......
Incredible!!!

For me, IPO = Its Probably Overpriced

[yeokiwi]

Come on... this is a tikum. earn a few bucks and go have a good meal with your family.

Looking at the huge interest, the question is if one is lucky enough to get it. Imagine the amt of $$ one has to throw in just to get a few lots......
Incredible!!!

For me, IPO = Its Probably Overpriced

The probability and payoff is much much higher than 4D.
But the initial capital is higher.

[safetyfirst]

Hmmm...kopi money alert.I will ballot! Huat arrr!

hi wolfT, do you usually hold yr IPOs, or do you usually sell on the first day? haha, huat arh!

[WolfT]

Hmmm...kopi money alert.I will ballot! Huat arrr!

hi wolfT, do you usually hold yr IPOs, or do you usually sell on the first day? haha, huat arh!

I usually don't ballot for ipo unless i am >70% sure i will earn money. I believe this ipo can earn 10-15% on the first few days. Well we would pro be getting 1-5 lots looking at things, well earn a few hundred dollars kopi money,don't look back...

[KopiKat]

I usually don't ballot for ipo unless i am >70% sure i will earn money. I believe this ipo can earn 10-15% on the first few days. Well we would pro be getting 1-5 lots looking at things, well earn a few hundred dollars kopi money,don't look back...

Sounds like an incredibly good tikam!
Just for fun, let's look at my Maths,

Assuming the response is really over-whelming, to get balloted 5 lots, most likely, you'll have to apply for 100 lots,

ie. Total Capital = $93k

Next, assuming you managed to stag at 10% to 15% profits, this means,

Profits = $465 to $698

But, don't forget our original Capital Outlay was $93k, so, the actual returns drops to 0.5% to 0.75% (Profits / Capital).

I think at any day, the odds of finding one of the stocks in my existing portfolio to make a similar 0.5% to 0.75% may be better than the odds of being balloted and making $$...
The added advantage is I won't be too concerned if after buying, the share price drops further as these are already my longer term hold stocks.

PS. I'm not against IPO tikam but in my case, I'll only go for those that I don't mind holding for longer term in case my bet goes wrong and prices drop instead. I'll even accumulate more of the same, as in the case of A-HTrust previously.