Global Logistic Properties (GLP)

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#21
Hello MW, nice to see you.
Your calculation not too correct.
Just need GLP to go up 3c, ie. $1.99, then we can breakeven.
A lot of people are waiting to make a quick buck.


(16-10-2010, 11:36 AM)Musicwhiz Wrote: For those who got alloted 1 lot, they will need to make at least S$27 to just break even (brokerage of $25 + $2 application fee). This means they need at least a 27% rise in the price of GLP (27c) on the first day of trade, or a market price of at least $2.23 ($1.96 + 27c). And we're only talking about breaking even! Even if GLP rises to $2.50 and these people "stag" it, they only make about $27 which is about enough to buy you a nice meal in a mid-range restaurant.

Assuming you get alloted 2 lots, you'd need a 13.5% gain to break even, and for those who got 3 lots (you'd need to apply for 99 lots!), you need a 9c rise in the market price to at least $2.05 to break even.

All this effort for so little realized gains. Is it worth it? Huh

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#22
(16-10-2010, 11:36 AM)Musicwhiz Wrote: For those who got alloted 1 lot, they will need to make at least S$27 to just break even (brokerage of $25 + $2 application fee). This means they need at least a 27% rise in the price of GLP (27c) on the first day of trade, or a market price of at least $2.23 ($1.96 + 27c). And we're only talking about breaking even! Even if GLP rises to $2.50 and these people "stag" it, they only make about $27 which is about enough to buy you a nice meal in a mid-range restaurant.

Assuming you get alloted 2 lots, you'd need a 13.5% gain to break even, and for those who got 3 lots (you'd need to apply for 99 lots!), you need a 9c rise in the market price to at least $2.05 to break even.

All this effort for so little realized gains. Is it worth it? Huh
MW... I think your calculation is off by 10x. hehe..
The price of GIC is $1.96 per share.
So 1 lot is $1960.
If the price increases by 10cts, the difference is $100.
Discounting the brokerage charge, the difference is $70.

If there is a 10% increase, the price diff from IPO is $196.

I know $196 probably means nothing much to most forum members here, but it is quite a nice sum to eat a good dinner.
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#23
i just sold the 2 thick prospectus with some newspaper to garang guni for 3 dollar + enough for a chicken rice later ;p
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#24
(16-10-2010, 01:02 PM)pianist Wrote: i just sold the 2 thick prospectus with some newspaper to garang guni for 3 dollar + enough for a chicken rice later ;p

for me, i allocated 1 lot GLP...will sell of if price touches $2.25.
pocket kopi $ 2250-(1960+30) = $260 can go JB top-up full tank plus seafood for4 pax.

Now, thinking of applying how many lots of MIT Huh
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#25
Apply 1 lot of MIT will definitely get one 1 lot.(Probability of success = 100%)
The estimated yield is 7.6% at 93cts.
Asssuming the punters and investors are accepting a yield of 6.5%, the price should be around $1.08.

One lot profit should be around $100.

Since this tikam is basically a tikam, I will just aim for more lots. Anyway,the money inside the bank is earning a miserable 0.x%.




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#26
I heard from my fren that spore billionaire investor peter lim has also invested in glp. If it's a bad deal or just for tikum I doubt he will go for it right?
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#27
(16-10-2010, 03:28 PM)Bibi Wrote: I heard from my fren that spore billionaire investor peter lim has also invested in glp. If it's a bad deal or just for tikum I doubt he will go for it right?

I will need a different rationale than his, in order for me to invest in this counter, but I have none yet. In fact, I will avoid it for the time being.

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#28
Yeah sorry my bad, I got my calculations messed up! Confused

Still, does not preclude the fact that I think this is one heck of a hyped-up IPO....haha!
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#29
Over glorified , D24 or 25 ???
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#30
Notice how the papers like to "juice up" the IPO with terms such as "gravy train"! Undecided

Business Times - 19 Oct 2010

IPO gravy train back on track with GLP debut


MIT up next as retail investors start getting excited again about fresh listings

By JAMIE LEE

(SINGAPORE) Global Logistic Properties (GLP) lived up to its billing on its trading debut yesterday, with the stock surging as much as 12 per cent.

This should help pave the way for more initial public offerings (IPOs) to come to market over the next few months, market watchers say, noting that GLP's good start - coupled with Mapletree Industrial Trust's (MIT) expected strong debut this Thursday - should inspire confidence in the listings market.

GLP shares shot to $2.19 at the start of trading before easing to $2.17 by the closing bell, up 21 cents from its IPO price of $1.96. Some 514 million GLP shares worth $1.11 billion changed hands in a single day.

'The performance was pretty much in line with what people expected,' said Chan Tuck Sing, UOB-Kay Hian executive director.

But the share price could pull back in the coming weeks since retail investors - who are likely to be the price movers for this stock - might have already picked up the gains they were looking for, while the upcoming debut of MIT could divert some interest from GLP, Mr Chan added. 'As far as institutional investors are concerned, I don't think there's a real need for them to chase the stock. So we might see the price consolidate.'

But Loh Hoon Sun, managing director of Phillip Securities, said that there should be some support for GLP if retail investors see the stock as a long-term investment.

GLP - which has Government of Singapore Investment Corporation (GIC) as its single-largest shareholder - could become the world's largest real estate IPO, if it exercises its overallotment option.

The world record is currently held by Hong Kong- listed Link real estate investment trust (Reit) which, in 2005, raised US$2.9 billion in its IPO.

GLP's IPO is Singapore's second-largest after Singapore Telecommunications' IPO in 1993, which raised S$4 billion.

Of the 1.76 billion GLP shares offered, 1.07 billion shares were placed out to institutional players and other investors in Singapore.

Another 102 million shares - or 5.82 per cent - were offered to the public, while 589 million shares were set aside for cornerstone investors. These include Alibaba Group, CB Richard Ellis, ING Clarion Real Estate Securities, Lion Global Investors, and former 'remisier king' Peter Lim.

GLP's cornerstone investors are free to sell their shares at any time, since they are not limited to a lock-up period for the shares they own, GLP's prospectus showed.

GLP's IPO also saw a windfall of $74.4 million for its CEO Ming Z Mei and its deputy chairman Jeffrey Schwartz, who sold 37.97 million vendor shares in total as part of the IPO.

Both own Schwartz-Mei Group (SMG), which held 6.8 per cent of GLP, with GIC holding the remainder.

Post-IPO, SMG's stake has been halved to 3.4 per cent, while GIC will hold a 51.5 per cent stake if the greenshoe option is fully exercised.

The debut of MIT later this week - which had its units also priced at the top end of its indicative range at 93 cents apiece - is expected to see even stronger interest from investors, said Phillip's Mr Loh.

MIT's attractive distribution yield of 7.6 per cent for fiscal 2010 means that investors might hold the stock for a longer time compared to GLP, said market watchers, adding that local investors would also be more familiar with MIT, which comprises 70 industrial properties here.

Other IPOs are expected to stream in, as they ride on the success of MIT and GLP, and as market sentiment picks up. Queues were seen at the Central Depository as retail investors rushed to open accounts to participate in the GLP and MIT IPOs - a scene not witnessed for some time.

'Whether the IPO trend can be sustained depends on whether punters can make money out of (the IPOs),' said UOB-Kay Hian's Mr Chan, referring to MIT and GLP.

'The expectation of capital gains has not been high. People expect to make some money, but not a lot.'

He added that the frail condition of the US economy has prompted fund flows into stronger economies, including Singapore.

'The money needs to be parked somewhere, so that forms some sort of temporary demand for better- quality equities, although the question is: what happens if the funds reverse?'

Christopher Wong, fund manager at Aberdeen Asset Management, said there could be more IPOs as the market is not looking cheap, and investors are hunting for purchases.

Phillip's Mr Loh added: 'If you leave your money in the bank now, you get practically nothing (in interest).'

Singapore Exchange CEO Magnus Bocker told a briefing yesterday that he expected more IPOs in the current quarter, noting that the number of IPOs should touch levels seen in the first quarter of fiscal 2010.

In that quarter - or the three months ended September 2009 - SGX ushered in 11 new listings.

Some new IPOs have already come a-knocking.

STX OSV Holdings (which builds offshore support vessels) yesterday lodged its prospectus, while two new IPO entrants - chemical systems engineering company Anchun International Holdings and mechanical engineering firm Mun Siong Engineering - are set to raise $36.4 million and $21.4 million from their respective IPOs.

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