I just read the Star Biz article: Promising debut by Ideal Jacobs
- Thursday May 19, 2011
Promising debut by Ideal Jacobs
KUALA LUMPUR: Industrial labels and nameplates maker Ideal Jacobs (M) Corp Bhd closed at 43 sen on its Bursa Malaysia's Ace Market debut, which represents a premium of 16 sen or nearly 60% higher than its initial public offering (IPO) price of 27 sen.
Its share opened at RM1.05 yesterday morning and hit its highest point of RM1.10 but retraced to below 70 sen after that and closed at 43 sen. It was the top volume on Bursa yesterday with 50 million shares changing hands.
It is interesting to note that the buy order for Ideal Jacobs was at RM1 for its premarket trade, which is 270% higher than its IPO price. Its first premarket transaction showed a buy order at 50 sen.
Chairman Andrew Jacobs said in a statement: “Today's listing underscores our commitment to enhance our geographic footprint in China and Thailand and provides us with direct access to the capital market, thereby enhancing our financial capacity to expand our theatre of operations as well as increase our productivity within our own supply chain.”
Ideal Jacobs' core business is manufacturing industrial labels and nameplates as well as laser/die-cut products and its secondary business is in the fabrication of plastic parts.
The US-based company also provides a total end-to-end solution to customers with full in-house capabilities including design and artwork creation, screen making and preparation, multi colour screen printing, and finishing processes.
It is an investment holding company with subsidiaries, Ideal Jacobs (Xiamen) Corp and Ideal Jacobs Corp (Thailand) Ltd.
Its public issue of 30 million shares has been fully subscribed with the 2 million shares that were made available for application by the Malaysian public oversubscribed by 315 times.
The company's IPO is expected to raise about RM8.1mil from investors and the local investing public upon listing on Bursa Securities. Upon listing, Ideal Jacobs is expected to have a market capitalisation of RM32.4mil.
It will allocate RM1.5mil to establish its plant in Suzhou, RM1mil to launch a new production line for engineered thermoplastic composite products in Thailand and RM800,000 to establish an industrial label manufacturing plant in Malaysia.
OMG! OMG! OMG!!!!!
You call that promising??????
Let me quote this bit again:
- Its share opened at RM1.05 yesterday morning and hit its highest point of RM1.10 but retraced to below 70 sen after that and closed at 43 sen.
Does the reporter understands and knows what this means at all??????
How on earth did the reporter conclude that such a trading performising equates to a promising debut from Ideal Jacobs?
Let's see.. it's now 10.27 am and Ideal Jacobs last traded at 0.385!
Which means that this stock had literally plunged to its death since listing!
And in fact I wonder how many punters got hammered trading the stock yesterday!!
Yeah.. promising debut!
Here's the screen shot of what I reckon is the most disgusting debut of a stock on KLSE. Yeah, I just wonder how on earth did the stock open at 1.05, climbed to 1.10 before plunging STRAIGHT DOWN! Yes straight down because by 9.20, the stock was trading at 51 sen!!!
I really think our financial media should STOP INSULTING us, the investing public, with such pathetic news headline! Stop turning our financial market into a circus!