Thursday, August 8, 2013

AirAsia X shares face retreat on end of stabilising action

AirAsia X shares face retreat on end of stabilising action

BY YVONNE TAN
YVONNE@THESTAR.COM.MY

PETALING JAYA: Maybank Investment Bank (Maybank IB) has ceased its stabilising action for AirAsia X Bhd after buying a total of 65.53 million shares post-listing of the company on Bursa Malaysia.

Analysts now say without further support from the stabilising manager, the stock could see some downward pressure when it’s re-quoted on Monday after the Hari Raya break.

“The share price could take a beating, but investors may want to scoop up some value from there,” said one analyst, who has been tracking the company since it was listed on July 10.


RHB Research initiated coverage on the low-cost, long-haul carrier on Monday at RM1.65 per share, premised on an adjusted financial year (FY) 2014 forecast enterprise value/earnings before interest, taxes, depreciation, amortisation and rent multiple of 8.5 times.

AirAsia X told Bursa Malaysia yesterday that during the stabilising period between July 10 and Aug 7, Maybank IB had undertaken stabilising actions where a total of 65.53 million shares, or 8.3% of the total number of shares offered under the initial public offering (IPO), were purchased at RM1.25 per share.

It had also exercised the over-allotment, also known as the greenshoe option, for a total of 52.98 million shares on Aug 7.

The total purchases made under the price stabilising action of 65.53 million shares and the exercise of the over-allotment option for 52.98 million shares fully cover the 118.51 million shares that had been over-allocated in the IPO for AirAsia X, it said.

A greenshoe is a clause included in an underwriting agreement that allows underwriters to buy up to an additional 15% of the shares sold under the IPO within 30 days of listing.

The greenshoe option and the price stabilisation mechanism are used to manage the supply of shares post-IPO, which, in turn, helps steady fluctuating stock prices.

Recall, Maybank IB had previously said that the price stabilisation mechanism aimed to enhance confidence in the market for new issues of shares and facilitate fund-raising activities by ensuring that the demand for shares in an IPO can be met in an efficient manner, and that price volatility during the period immediately after listing can be minimised.

As disclosed in the AirAsia X IPO prospectus, as the stabilising manager, Maybank IB can purchase up to 118.51 million shares in AirAsia X within the first 30 days of listing.

This is as a result of an over-allotment option granted by shareholders Orix Airline Holdings Ltd and Manara Malaysia I Ltd to Maybank IB as the stabilising manager.

In its initiation report, RHB Research, which had tagged a “buy” call on the company, said it foresaw a robust earnings compounded annual growth rate of 136% from FY12 to FY15, propelled by rising passenger traffic as a result of an expanding fleet, growing yields and new ancillary initiatives.

AirAsia X last traded at RM1.19. It made some RM34mil in net profit for its financial year ended Dec 31, 2012.


Source/Extract/Excerpts/来源/转贴/摘录:.thestar.com.m
Publish date: 08/08/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
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做自己熟悉的事,等到发现大好机会才投钱下去

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“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
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