Friday, January 6, 2017

New Reit going to list on Bursa - KIP Reit

REIT in Malaysia stock market had been quiet for quite some time. In the beginning of 2017, seem we are going to welcome another new REIT on board, KIP REIT. Currently, this REIT is open for IPO application, the closing date is 16 Jan 2017 and tentative listing date is 6 Feb 2017.

I am a fan of REIT investment for quite some time, you can view one of my old article here: How to Earn Money in REIT. One can achieved investment return of 8% to 10% per year by just investing in REIT and receive the dividend. When the market pull back, if you know how to take advantage of price weakness, the return can easily above 10%. Therefore, KIP Reit is one of the reit one should not miss. With the IPO price of $1.00, one can expect something slightly more than 6 cents dividend per annum, this translate to about more than 6% in return.

For details of this IPO, just refer to below link:
http://www.thestar.com.my/business/business-news/2016/12/30/kip-reit-to-raise-at-least-rm234m-from-ipo/

Initially, KIP Reit will have 5 Kip Marts in their portfolio, namely, Tampoi, Kota Tinggi, Masai, Senawang and Malacca. The logo looks like this:

At first, I thought it's a small apple on top, but when I enlarge the image, it's a Tomato... this logo really suit their business model as they concentrate in wet market and conventional shopping center, mainly for lower and middle income group. With this, they call it as "hybrid community-centric retail centres" Reit.

The last IPO listed on Bursa was ALS Reit on Sep 2015, the IPO price is also $1.00 and almost have the similar dividend yield of around 6%. On first day of listing, ALS Reit hit the highest price of $1.06, then it pull back to $0.91 for the next few weeks. Currently, it stand at around $1.05. Investors who bought at IPO price of $1 will have return of about 10%, and those who invest when the stock pull back around $0.93 and below will see their return of around 15% including dividend.

This is the purpose I write this post today, if the history of ALS going to give any indicator, then investor can come out a plan for KIP Reit and take advantage of it. I wish you all Good Luck!






Thursday, January 5, 2017

How to make money from IPO

IPO (Initial Public Offering) is one of the way investors can make easy money. Ten or twenty years ago, this was especially true, when one strike an IPO, in Malay, it's call 'Durian Runtuh', one just can see the money falling from the sky! If you ask me, how much one can make during those day for an IPO? Let me give an example, the first day when Tenaga (the biggest utility company in Malaysia) went listing, the opening price was $7.50, compared to IPO price of $4.50... that was handsome profit of more than 60% !

Today, the 60% profit for one day seem to become a history. This is due to the pricing method and more Investment Bank advise their client to left little money on the table for investors. Though not that juicy anymore, but the IPO still become one of the way for investor to make quick money, especially in the current flag market trend. (no direction)

From last year's record, almost 95% of IPO still above their issue price, meaning investors still can make some money if hold on to it, unless you are not lucky to hold on the other 5%, But again, if you are in the 5% category, you still have a lot of time to dump your shares, as the stock price will not fall in one day.

How to apply for IPO? Some fifteen years ago, we have to fill in a form, purchase a Bank Draft, photo copy an I.C., attach the Bank Draft with the form and send it to the Issuing House. Today's investors are lucky and convenience, they can perform all these step through internet by just click on a few button or clicks. Thanks to the internet and smart phone.

So, if you never try the IPO, in the beginning of the year, this might be one of the option for you to participate in IPO market. Currently there are few of them open for application, Good Luck!