Tomorrow will be the day for PCHEM listing, which is Southeast Asia''s biggest IPO. It has the potential to outshine that of other big-capitalised firms in KLSE. According to Maybank IB research, they believe the share prices for PCHEM worth around RM6.64 per share, using discounted cash flow and PER valuation metrics, where OSK targets it to be RM5.51.
The company's retail IPO price of RM5.04 is very attractive with deep discounts compared with global peers: one year forward PER and enterprise value/earnings before interest, taxes, depreciation, and amortisation is 24 per cent and 53 per cent lower.
The research house said the listing was a new big show and a golden opportunity not to be missed. The petrochemical industry is in the recovery stage of a cyclical uptrend. 2009 was the last trough, the next boom would be expecting in 3 to 5 years.
I'm very fortunate this time, I obtained PCHEM IPO on last week. I felt strange this time, because many of my East Malaysia friends, including myself did not manage to get any IPO shares from Maxis and MHB IPO. But this time, all of us get it, some in full subscribed amount and some get partial. Strange isn't it.
Anyway, to hold it for 1 to 2 years or to sell it at a good price within the first few days, I have yet to decide. It seems that MHB and Maxis are doing good so far, no point to sell them if you like very low risk and very stable stock. As I would need the capital for other stock investments, perhaps I will sell 50% of them in the first day and keep the rest for minimum 1 or 2 years, if the selling price is attractive enough.
If you are on the same boat, good luck to you too.
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