Maxis closes at RM5.42 after hitting high of RM5.50
2009/11/20A hunger for quality stocks among large investors has helped sustain interest in shares of Maxis Bhd (6012) in their trading debut.
The stock, the most heavily traded yesterday, rose 9.2 per cent at the opening before hitting a high of RM5.50 for a 10 per cent gain.
It closed at RM5.42, with a market value of RM40.6 billion, making it the fourth most valuable listed Malaysian company.
Maxis' IPO price was RM5 for big investors who got more than 90 per cent of the shares sold, while smaller investors had to pay RM4.75 apiece.
"We believe a lot of institutional funds, which did not get the shares that were allocated, are buying the stock from the open market," said Jupiter Securities head of research Pong Teng Siew.
Maxis Communications Bhd sold 2.25 billion Maxis Bhd shares, raising some US$3.3 billion (over RM11.1 billion).
Some local institutional investors even felt they were given too few shares.
The main IPO arranger, CIMB Investment Bank Bhd, said the allocation to local funds was based on several factors, including loyalty, pricing and quantity.
"All the funds go through the same process of assessment," said CIMB group chief executive officer Datuk Seri Nazir Razak in a media conference after the listing.
Analysts believe interest in Maxis will remain strong, as some institutional funds may want a bigger slice of the Maxis cake.
"A lot of funds would be willing to pay a premium for it," added Pong, whose research house has a target price of RM6.28.
It closed at RM5.42, with a market value of RM40.6 billion, making it the fourth most valuable listed Malaysian company.
Maxis' IPO price was RM5 for big investors who got more than 90 per cent of the shares sold, while smaller investors had to pay RM4.75 apiece.
"We believe a lot of institutional funds, which did not get the shares that were allocated, are buying the stock from the open market," said Jupiter Securities head of research Pong Teng Siew.
Maxis Communications Bhd sold 2.25 billion Maxis Bhd shares, raising some US$3.3 billion (over RM11.1 billion).
Some local institutional investors even felt they were given too few shares.
The main IPO arranger, CIMB Investment Bank Bhd, said the allocation to local funds was based on several factors, including loyalty, pricing and quantity.
"All the funds go through the same process of assessment," said CIMB group chief executive officer Datuk Seri Nazir Razak in a media conference after the listing.
Analysts believe interest in Maxis will remain strong, as some institutional funds may want a bigger slice of the Maxis cake.
"A lot of funds would be willing to pay a premium for it," added Pong, whose research house has a target price of RM6.28.
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