Modest debut for Astro shares in Malaysia

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Astro’s major shareholder Ananda Krishnan, Malaysia’s richest man

Astro Malaysia Holdings Bhd, the country’s biggest pay-TV firm, opened 1 per cent higher in its trading debut on Friday, October 19.

The stock was trading at RM3.03 short after the opening from the RM3.00 price set for Malaysia’s third-biggest initial public offering this year after palm oil firm Felda Holdings and hospital operator IHH Healthcare. On Friday afternoon, Astro’s shares for some time settled at RM3.09, or three per cent above the IPO price, after they fell back from a high at RM3.11. However, the session ended at RM3,00, on par with the IPO price.

Astro’s $1.5 billion IPO marked the last major listing this year in Malaysia, which became the top IPO market in Asia-Pacific in 2012.

However, the share price rise at the opening was below the expectation of analysts of about 5 to 6 per cent, mainly due to concerns that the company’s valuation was too high. By comparison, Felda closed 16.5 per cent higher on its first trading day, IHH Healthcare had gained 10.5 per cent on its debut.
Astro, which also counts state investor Khazanah Nasional Bhd as a major shareholder, has a near-monopoly in Malaysia’s residential pay-TV market and a subscriber base of 3.1 million. It is returning to public markets after it was taken private in 2010.
The next major listing in Malaysia will be the planned $1 billion offering for independent power producer Malakoff, 51 per cent-owned by MMC Corp Bhd, in the first quarter of 2013. Westports Malaysia Sdn Bhd, operator of the country’s busiest port, is looking to raise as much as $500 million in an IPO in the second quarter of 2013. The founders of Malaysia’s AirAsia Bhd, Tony Fernandes and Kamarudin Meranun, are also set to kick off an IPO spree in 2013 with three listings worth more than $500 million.

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[caption id="attachment_4853" align="alignleft" width="240"] Astro's major shareholder Ananda Krishnan, Malaysia's richest man[/caption] Astro Malaysia Holdings Bhd, the country’s biggest pay-TV firm, opened 1 per cent higher in its trading debut on Friday, October 19. The stock was trading at RM3.03 short after the opening from the RM3.00 price set for Malaysia’s third-biggest initial public offering this year after palm oil firm Felda Holdings and hospital operator IHH Healthcare. On Friday afternoon, Astro's shares for some time settled at RM3.09, or three per cent above the IPO price, after they fell back from a high at RM3.11. However, the session ended...

Astro’s major shareholder Ananda Krishnan, Malaysia’s richest man

Astro Malaysia Holdings Bhd, the country’s biggest pay-TV firm, opened 1 per cent higher in its trading debut on Friday, October 19.

The stock was trading at RM3.03 short after the opening from the RM3.00 price set for Malaysia’s third-biggest initial public offering this year after palm oil firm Felda Holdings and hospital operator IHH Healthcare. On Friday afternoon, Astro’s shares for some time settled at RM3.09, or three per cent above the IPO price, after they fell back from a high at RM3.11. However, the session ended at RM3,00, on par with the IPO price.

Astro’s $1.5 billion IPO marked the last major listing this year in Malaysia, which became the top IPO market in Asia-Pacific in 2012.

However, the share price rise at the opening was below the expectation of analysts of about 5 to 6 per cent, mainly due to concerns that the company’s valuation was too high. By comparison, Felda closed 16.5 per cent higher on its first trading day, IHH Healthcare had gained 10.5 per cent on its debut.
Astro, which also counts state investor Khazanah Nasional Bhd as a major shareholder, has a near-monopoly in Malaysia’s residential pay-TV market and a subscriber base of 3.1 million. It is returning to public markets after it was taken private in 2010.
The next major listing in Malaysia will be the planned $1 billion offering for independent power producer Malakoff, 51 per cent-owned by MMC Corp Bhd, in the first quarter of 2013. Westports Malaysia Sdn Bhd, operator of the country’s busiest port, is looking to raise as much as $500 million in an IPO in the second quarter of 2013. The founders of Malaysia’s AirAsia Bhd, Tony Fernandes and Kamarudin Meranun, are also set to kick off an IPO spree in 2013 with three listings worth more than $500 million.

Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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