Another Round of Maxis IPO | Ramblings of an e-trader

Sunday, 1 November 2009

Another Round of Maxis IPO

Maxis, which will be relisted on KLSE on 19th November, 2009 after taken private in 2007, is open for IPO application until 5th November. I have applied for one lot using the blue form, which qualifies me for restricted balloting. Most Maxis users that I know only qualify for blue forms. I understand that Green Forms are for Maxis One Club members, Maxis customers whose bill exceeds RM1000 monthly.

Like I said, I have applied and most of my friends who are Maxis subscribers have too, or are going to. The thing is, RM5.20 per share is on the high side already especially in such a share market condition, which reduces upside potential.

I asked a friend, who is in risk management, if Maxis IPO is worth applying for, and he said it is, provided one does not need to sell early. He said that Maxis share is at market value and if he were to buy stocks, he would rather buy counters that are undervalued. On the other hand, he said that at a projected dividend of 75%, the yield would be even better than Fixed Deposit.

By the way, this friend, whom I consult all the time regarding financial matters, will not be applying for Maxis IPO. He isn't a Maxis customer. So, if you are offered a chance to apply for Maxis IPO using the blue or green form, are you applying or are you passing up the chance?

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