ALL eyes will be on the performance of Malakoff Corp Bhd’s shares once it begins trading on May 15. Although its initial public offering (IPO) had garnered a lot of interest, considering it enjoyed a 13% over subscription rate by institutional investors, that is hardly any indication that the shares would enjoy a similar demand once its begins to be traded.
But why is that? If the demand for Malakoff’s shares exceeded supply by 13 times, then shouldn’t these very investors (who did not get the amount of Malakoff shares at the IPO as they wanted) be lining up their orders to scoop up Malakoff’s shares if they are traded in the market at the same price as the IPO? What will be even more confounding is if these investors are no-where to be seen even if Malakoff’s shares drop below the RM1.80 IPO price level.
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