Interplex Holdings (formerly: Amtek Engineering)

[ag88]

not vested & not vesting prior to doing 'deep' homework
btw i don't mind carrying the 'babies' from the off-loaders if there is genuine value & there are good strong reasons to vest in the biz & is a decent bargain, lol

[starbugs]

Gone case! IPO size cut!

Small victory for small investors. Looks like even the big funds also not so stupid to subscribe. Beware that the share allocation can still be switched from BB to retail investors.

The underwriters may lose their pants on this one.


http://www.reuters.com/article/idUSL3E6MO03920101124

Amtek Engineering cuts size of Singapore IPO-IFR
Tue Nov 23, 2010 10:22pm EST

Nov 24 (Reuters) - Amtek Engineering has slashed the size of its Singapore initial public offering and will now raise a maximum of S$299 million ($228 million), IFR reported on Wednesday.

Amtek had previously planned to issue as many as 342 million shares, including greenshoe and upsize options, at a price of S$1.30-1.60 per share, Reuters had reported. [ID:nSGE6AB02S]

Amtek, delisted from the Singapore bourse about three years ago after being bought out by private equity firm CVC Capital and a unit of Standard Chartered , will issue 200 million shares at S$1.30 each, IFR said.

The firm has an option to increase the offer by 30 million shares, IFR reported.

Credit Suisse and Morgan Stanley are joint global coordinators for the Amtek IPO and are joint lead managers, bookrunners and underwriters alongside Standard Chartered. (By Daniel Stanton; Editing by Anshuman Daga)

[Stocker]

Undersubscribed, no balloting is required, applicants will get what they applied.

[Musicwhiz]

Not much of a big surprise, frankly....

Business Times - 02 Dec 2010

HOT STOCKS
Amtek stumbles in IPO debut

The stock closed at $1.03, down 21% from its IPO price of $1.30

By JAMIE LEE

SHARES of Amtek Engineering slumped as much as 24.2 per cent from its listing price on its first day of trading, joining the rest of the recent IPO debutants that have done poorly.

The stock closed at $1.03 yesterday, down 20.8 per cent from its IPO price of $1.30.

In the first hour of trading, Amtek shares bounced between an intraday-low of 98.5 cents at the open to an intraday-high of $1.08, before floating lower.

A CIMB report indicated that Amtek might seem expensive compared to players such as InnoTek and Venture Corporation.

'Investors who heeded our call could have gotten in at a better entry level,' the report noted.

'Though we continue to prefer InnoTek over Amtek for its better yield and less demanding valuations, traders may be attracted by the sharp decline in Amtek's share price,' it added.

CIMB said that InnoTek - which assembles parts for the hard disk drive industry - offers a stronger yield and trades at a lower price-to- book (P/BV) multiple compared with Amtek.

InnoTek trades with a yield of about 9 per cent and at a historical P/BV of about 0.65 times.

But Amtek's IPO price of $1.30 represents a historical P/BV of 4.1 times, while dividend per share - assuming a 50 per cent payout ratio for a net profit of US$46.2 million - represents a 4.3 per cent yield.

'If we assume Amtek's FY2011 net profit goes back to US$46.2 million, earnings per share on 543.2 million shares would mean a forward price-to- earnings of 11.6 times,' CIMB said, adding that this would value Amtek close to Venture's forward price-to- earnings for 2011.

Amtek - which is returning to the market after its delisting in 2007 - saw an overall subscription of 1.4 times for its IPO.

But its public tranche offer, initially set at 20 million shares in size, was undersubscribed, with total applications coming to 11.727 million shares.

All applicants were allotted Amtek shares accordingly, while the remaining shares not subscribed were reallocated under the institutional tranche.

Amtek brings the total number of listings on SGX to 785. Its listing - with a market value of $706 million - has raised the market's combined capitalisation to $880 billion.

[dydx]

Those rich people who got shares through preferential placements from their private/premier bankers must be crying and wondering what had happened to this big IPO. They may even feel cheated by their bankers! More importantly, they would have learned a good lesson that punting on big IPOs can be risky.

[Musicwhiz]

Those rich people who got shares through preferential placements from their private/premier bankers must be crying and wondering what had happened to this big IPO. They may even feel cheated by their bankers! More importantly, they would have learned a good lesson that punting on big IPOs can be risky.

Those who got their shares through placements (accredited investors) and balloting (retail investors) are the ones who will cry most foul, and the ones who are laughing all the way to the bank are those private equity people who took Amtek private and are now re-listing it @ $1.30 per share!

[kazukirai]

The question that I have is who were the people buying this IPO?

Judging from the punting crowd (in a thread by Starbugs) over on the CNA forum, even the punters didn't seem to go for it. The institutional investors should also have been pretty aware of this IPO's background if retail investors could also dig out that much.

Wonder who was on the buy-side of this and what were their motivations?

Btw, Starbugs' thread on Amtek in the CNA is really good! I remember he/she was a registered forummer in Afralug at one point too but don't seem to see Starbugs here.

[Risk Adverse]

Morgan Stanley has been buying Amtek shares to support price at $1.00 or above.
They have a budget of $30mil and have already used up $10mil in the first two days of trading.
The stabilizing actions will cease after 30 days or upon depletion of budget.
So price may decline further after stabilizing action stops.

[Stocker]

Morgan Stanley has been buying Amtek shares to support price at $1.00 or above.
They have a budget of $30mil and have already used up $10mil in the first two days of trading.
The stabilizing actions will cease after 30 days or upon depletion of budget.
So price may decline further after stabilizing action stops.

The truth will still surface eventually, how long can a paper cover the fire ?

[Blackjack]

I bet the institutional investors are also having a quick punt to capitalise on the bullish sentiments. If things don't work out, then just bail out. Poor Morgan Stanley.