02-12-2010, 07:33 AM
Not much of a big surprise, frankly....
Business Times - 02 Dec 2010
HOT STOCKS
Amtek stumbles in IPO debut
The stock closed at $1.03, down 21% from its IPO price of $1.30
By JAMIE LEE
SHARES of Amtek Engineering slumped as much as 24.2 per cent from its listing price on its first day of trading, joining the rest of the recent IPO debutants that have done poorly.
The stock closed at $1.03 yesterday, down 20.8 per cent from its IPO price of $1.30.
In the first hour of trading, Amtek shares bounced between an intraday-low of 98.5 cents at the open to an intraday-high of $1.08, before floating lower.
A CIMB report indicated that Amtek might seem expensive compared to players such as InnoTek and Venture Corporation.
'Investors who heeded our call could have gotten in at a better entry level,' the report noted.
'Though we continue to prefer InnoTek over Amtek for its better yield and less demanding valuations, traders may be attracted by the sharp decline in Amtek's share price,' it added.
CIMB said that InnoTek - which assembles parts for the hard disk drive industry - offers a stronger yield and trades at a lower price-to- book (P/BV) multiple compared with Amtek.
InnoTek trades with a yield of about 9 per cent and at a historical P/BV of about 0.65 times.
But Amtek's IPO price of $1.30 represents a historical P/BV of 4.1 times, while dividend per share - assuming a 50 per cent payout ratio for a net profit of US$46.2 million - represents a 4.3 per cent yield.
'If we assume Amtek's FY2011 net profit goes back to US$46.2 million, earnings per share on 543.2 million shares would mean a forward price-to- earnings of 11.6 times,' CIMB said, adding that this would value Amtek close to Venture's forward price-to- earnings for 2011.
Amtek - which is returning to the market after its delisting in 2007 - saw an overall subscription of 1.4 times for its IPO.
But its public tranche offer, initially set at 20 million shares in size, was undersubscribed, with total applications coming to 11.727 million shares.
All applicants were allotted Amtek shares accordingly, while the remaining shares not subscribed were reallocated under the institutional tranche.
Amtek brings the total number of listings on SGX to 785. Its listing - with a market value of $706 million - has raised the market's combined capitalisation to $880 billion.
Business Times - 02 Dec 2010
HOT STOCKS
Amtek stumbles in IPO debut
The stock closed at $1.03, down 21% from its IPO price of $1.30
By JAMIE LEE
SHARES of Amtek Engineering slumped as much as 24.2 per cent from its listing price on its first day of trading, joining the rest of the recent IPO debutants that have done poorly.
The stock closed at $1.03 yesterday, down 20.8 per cent from its IPO price of $1.30.
In the first hour of trading, Amtek shares bounced between an intraday-low of 98.5 cents at the open to an intraday-high of $1.08, before floating lower.
A CIMB report indicated that Amtek might seem expensive compared to players such as InnoTek and Venture Corporation.
'Investors who heeded our call could have gotten in at a better entry level,' the report noted.
'Though we continue to prefer InnoTek over Amtek for its better yield and less demanding valuations, traders may be attracted by the sharp decline in Amtek's share price,' it added.
CIMB said that InnoTek - which assembles parts for the hard disk drive industry - offers a stronger yield and trades at a lower price-to- book (P/BV) multiple compared with Amtek.
InnoTek trades with a yield of about 9 per cent and at a historical P/BV of about 0.65 times.
But Amtek's IPO price of $1.30 represents a historical P/BV of 4.1 times, while dividend per share - assuming a 50 per cent payout ratio for a net profit of US$46.2 million - represents a 4.3 per cent yield.
'If we assume Amtek's FY2011 net profit goes back to US$46.2 million, earnings per share on 543.2 million shares would mean a forward price-to- earnings of 11.6 times,' CIMB said, adding that this would value Amtek close to Venture's forward price-to- earnings for 2011.
Amtek - which is returning to the market after its delisting in 2007 - saw an overall subscription of 1.4 times for its IPO.
But its public tranche offer, initially set at 20 million shares in size, was undersubscribed, with total applications coming to 11.727 million shares.
All applicants were allotted Amtek shares accordingly, while the remaining shares not subscribed were reallocated under the institutional tranche.
Amtek brings the total number of listings on SGX to 785. Its listing - with a market value of $706 million - has raised the market's combined capitalisation to $880 billion.
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