Two close out the year 2010, two companies, Nickel Asia Corporation, and IP Converge Data Center, will be offering shares to the public via an IPO, and to try and ride the bullish wave currently sweeping the Philippine Stock Market.
One of the signs that a market is going really bullish is that a lot of companies are offering IPOs, or an Initial Public Offering of their company. They tend to take advantage of the bullish markets, in order to raise cash for further investments to expand their business.
Just last month, Cebu Pacific finished their IPO, with a listing price of 125 pesos per share. It was reportedly three times oversubscribed, showing that despite the huge offer size, there was strong demand. However, upon listing, stock performance was relatively disappointing, gaining only about 6%. At the moment, price has gone lower below the IPO price. But still, this can be attributed to the huge offer size, and the perception among investors that the Gokongweis are greedy, but will not elaborate more on this hehe.
However, I have a good feeling for these two new IPOs, as they are much, much smaller in size compared with CEB. Detailed posts on Nickel Asia Corporation and IP Converge Data Center will follow.
Caveat to all readers, just before the market plunge of 2008-09, the Philippine Stock Exchange listed many new stocks. Are we headed to a new dark period in our stock market? Hope fully not.
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