Post-IPO Japfa is not confidence-inspiring
Add BT as a preferred source
WHEN Indonesia agri-food company Japfa Ltd listed in Singapore in August, it was widely touted as a triumph for the local initial public offering (IPO) market. With a market capitalisation of just over S$1 billion, Japfa was seen as an institutional stock that offered exposure to the fast-growing Indonesian economy as well as China and the rest of the region.
It was a story that sold well and was seen as being key in helping to restore confidence in Singapore stocks, which had fallen to one of its lowest points in recent memory.
As it turned out, Japfa's IPO did in fact generate some interest - food is after all a recession-proof commodity, so the IPO of 248 million shares of S$0.80 each was five times subscribed, whilst the over-allotment portion of 37.2 million shares was fully exercised.
TRENDING NOW
Jardine C&C selling Singapore, Malaysia dealerships to Indonesia’s Chandra Asri for US$221 million gain
When every phone becomes a satellite phone, what happens to Asia’s telcos?
Stocks to watch: Jardine Cycle & Carriage, Creative Technology, CNMC Goldmine
Malaysia’s Genting posts Q2 net loss despite 14% rise in revenue
