It was just recently that the price for Nickel Asia Corporation’s (NIKL) IPO, or Initial Public Offering, in the Philippine Stock Exchange, was set at 15.00 Pesos per share. Initially, the offer price range was pegged between 14.95 to 23.00 Pesos per share. With the final offer price being set at the lower range, does this mean there’s little demand?
Not really. The underwriters may have taken its cue from Cebu Pacific’s (CEB) relatively high-priced IPO debut, where after just a few days, price have now fallen below the IPO price. Indeed, they may have noticed that pricing the IPO at the high end of the price range in a bull market, does not necessarily mean that the stock price on value can still appreciate on debut. Pricing NIKL’s IPO on the low end may have given the stock some room to grow upon listing, and not crash-land upon listing, just like what happened to Cebu Pacific.
Still, let’s wait for further news regarding demand for this stock, before making any conclusions.
Again, if you’re interested in subscribing to this IPO, you can reach me here, and I will gladly help.
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