FELDA Global Ventures Holdings (FGVH) was one of the most wanted IPO in 2012.
The demand for the IPO was very good. We can see that, the institutional portion of the initial public offering has been oversubscribed by 45 times. On the retails front, it was oversubscribed by 6.75 times.
For those who lucky enough to get the IPO or want to buy FGVH shares from the open market, you may want to look at target price / fair value.
Research houses give early target or fair prices for FGVH ahead of the listing date of 28th June 2012. Most of them generally targeted higher than IPO subscription prices & all of them aim higher than RM5.00. For comparison, the IPO price is RM4.45 for retail investors and RM4.55 for the institutional investors.
In average, the target price is approximately 24 percent higher than the IPO price. The table below is the compilation of target price / fair value from various research houses.
| No | Investment or Research Companies | Target / Fair Price (RM) |
|---|---|---|
| 1 | Affin Investment Bank | 5.50 |
| 2 | BIMB Securities | 5.37 to 6.45 |
| 3 | ECM Libra | 5.65 |
| 4 | InterPacific Research | 5.80 |
| 5 | JF Apex Securities | 5.40 |
| 6 | M&A Securities | 5.65 |
| 7 | Maybank Investment Bank | 6.00 |
| 8 | MIDF Research | 5.30 |
| 9 | Public Investment Bank | 5.44 |
| 10 | TA Securities | 5.50 |
If you have target price / fair value from another brokers, kindly leave your comment.
Sources from investment bankers says it will breach RM6.00 after a few days…but still…have to wait and see..
as stated all the various broker company / it will be fair value around rm 5.50 thanks
Why did Maybank Investment Bank announced only a RM6.00/share target as the fair value for FGVH? I would say a RM6.45/RM6.55 price tag isn’t unimaginable – yes, sing along with the late John Lennon, “Imagine”….
Arifin Abdul Latif, I hope it can go that high. Do you get any IPO allocation?
Hi,
I suspect the price will remain higher than IPO price, initially within the few days & weeks after IPO and then continue until election. So, we’ll have to wait and see what’s the proscpect after that.
BIMB gave 5.37-6.45 from TheEdge 16 May.
Thank you leman. Table updated.