Can you believe it, Careplus IPO public issue has oversubscription rate of 46.75 times! The highest oversubscribe rate this year so far. The success rate is very low, I would say it is a lot lower chance than MHB and PCHEM that you will get it. For your info, I did not apply Careplus IPO.
Due to the price is 23 cents per unit, it is affordable to buy more per applicant. Nonetheless, by looking at the applications, it has only close to 1,000. That's mean, less buyers but more lots applied.
Since quite a number of public investors cannot get the IPO, does it means the price likely to shoot up upon it debut on 6th Dec? Since it is an ACE market, it is quite easy to tell. Based on this year statistics, most of the ACE market IPOs fall like nobody upon trading, they are GENOME, SCC, FOCUSP and OVERSEAS. There only IPO which shine like the king in the first day was EAH.
I remembered another recent IPO debuted in early October, GENOME, also oversubscribed by closed to 30 times, with close to 5,000 applications received. But the debut is like a drama. Initially it went up close to 10% margin from the IPO price, and then fall like nobody and close lower 22% from the peak.
Nonetheless, the starring this time is rubber glove maker, the effect may be different from other ACE IPO, although rubber glove maker is no longer a hot cake now. On the other hand, Careplus boss mentioned that they plan to double the revenue by 2013. If it is true, with it's IPO low PER of 7.x compare to other strong peers in PER 10.x, Careplus may be a good mid-term investment. About to buy or not in the first debut day, I would like to stay far away from this kind of 'opportunity'.
If you managed to hit Careplus IPO, congratulations, because you are very lucky.
Have a nice weekend, folks.
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