Thursday, November 4, 2010

NIKL - Nickel Asia Corporation IPO

At a glance:
Offer Price Range: 14.95 - 23.00 Pesos per share
Tentative Listing Date: November 22, 2010
Offer Period: November 9 to 15, 2010

Now, after the crash-landing of Cebu Pacific’s (CEB) IPO, now closing even lower below its IPO price, investors are now starting to doubt the success of Nickel Asia Corporation’s IPO. But what really are in store for us, the traders and investors?

For one, IPO thrives on the hype, which in turn generates demand. High-demand means scarcity of available shares. Scarcity of available shares, leads to higher prices. But for Nickel Asia, much excitement has been generated for their IPO, that is, before Cebu Pacific’s IPO crash-landed.

Still, as one of the largest mining companies in the Philippine operating at the moment, this will surely generate some interest among mining investors, especially from AT, ORE, LC, PX. I for one believes that this will be a success, primarily because the offer size is much smaller as compared with CEB’s humungous offering, making it easier to “push”, as the market veterans says hehe.

Now, you ask: “How do I get shares?” If you already have brokers, call them, and ask for an allocation. Usually, they prioritize their “bigger” clients in allocating shares, but to those smaller accounts, you can try to obtain shares through their LSI Program, or the Local and Small Investors Program, through the local underwriter, which is ATR KimEng.

And if you need assistance in getting shares, you can contact me for more details. 

For further reading from the Philippine Stock Exchange website: 

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