Malakoff shares fall below IPO price

PETALING JAYA: Just four days after its debut, Malakoff Corp Bhd failed to ignite investors’ interest as the counter fell below its IPO price to RM1.72 yesterday, largely due to a huge sell-off by institutional investors.

It fell 4 sen or 2.27% at the end of trading yesterday, reflecting an overall lacklustre performance from its RM1.80 IPO price despite its stable earnings estimates based on its position as an independent power producer (IPP) to the country’s main power company Tenaga Nasional Bhd (TNB). The energy counter, according to an investment banker, was caught in a “tricky” and tough market condition as foreign brokers quickly shifted their interest back to the US markets which were considered more appealing due to potentially higher interest rates and better market conditions.