Malaysia IPO Tutorial Part 2 - Where to check for Balloting Results Announcement?

March 24, 2021

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***All contents here are translated from my mandarin blog without changing chronological part (timeline), therefore there might be some timeline dispute between the contents and posts release date.***

Headings

Today is the Chinese New Year eve, I would like to express my blessings to everyone and wish all of us can have a better achievement in this ox year while waiting for the COVID-19 pandemic to diminish gradually.

And I’m still here to provide an update of the latest IPO before celebrating CNY with my family.

To those who paid intention or just applied the latest IPO - Mobilia Holdings Berhad should know that Today isn’t just CNY eve but also the release date of this IPO’s balloting result.

It means that this balloting result has been released to the market on this evening while it is about to be listed on Bursa Ace market.

So let us check on what are the findings in this balloting result. But before that, you should know how can we as the IPO applicants to find the balloting results online.

How to search for IPO Balloting Result（Bursa Malaysia）

1. Enter Bursa Malaysia

2. Click searching icon on top left column

3. Search the IPO Company Name

4. On bottom part, click “Recent Market Announcement”

5. In the announcements list, find an “Others” announcement that released on balloting date and there will be a press release and balloting result inside.

How to apply IPO (Initial Public Offering) online in Malaysia? How to apply IPO with Maybank2u Public Bank and CIMB. How to check eIPO application status online. Malaysia IPO Balloting result Basis of Allotment .Online eIPO Tutorial Process to get new listed company shares. Why we need to apply IPO and how to earn money with IPO. Ramssol Group Berhad Pekat Group Berhad CTOS IPO Tuju Setia IPO CEKD IPO Haily Group Berhad IPO Prospects Analysis Bursa Malaysia IPO Guideline

Step 1,2,3

Step 4

Step 5

How to search for IPO Balloting Result（TIIH Website）

1. Enter Tricor Investor & Issuing House (ended with .my)

2. Click on “IPO Press Release” on the menu bar.

3. Find the relevant IPO，and select the document you want (Press Release or Basis of Allotment)

Step 1,2

Step 3

How to search for IPO Balloting Result（MIH Website）

1. Enter Malaysian Issuing House

2. Shift your mouse to IPOs on upper left side

3. Click “IPO Press Release” in column IPOs

4. Find the relevant IPO，and select the document you want (Press Release or Basis of Allotment) in pdf format.

Step 1,2,3

Step 4

IPO Balloting Result - Example（Mobilia IPO）

Mobilia IPO Basis of Allotment

There is nothing too complicated in these columns, therefore I will use a simple story to explain these terms and their meanings to every reader.

For every balloting result or basis of allotment, you will always see 2 categories of allotment which are under Bumiputra and under Public (Non-Bumi).

Let's get start with my story

As a Chinese, I will only look at the lower part (Public category) to review the result and if you are under Bumi then you should look at the upper part (Bumi category).

Assume that I subscribed a total of 20,000 units of shares (or 200 lots) of Mobilia Holdings Berhad.

So I’m under the 7^th tier which is the range of shares between 20,000 units and 49,900 units (or 200 lots to 499 lots).

Under this tier, there are 6344 applicants and only 308 of them are being selected. This means that the success rate of this tier is 4.85%.

Every successful applicant from those 308 will get 6000 units of shares (or 60 lots). All successful applicants get a total of 1.848 million units of shares from the public offering of 10 million => 18.4% total shares allotted.

IPO Balloting Result – Interpretation/Analysis（Mobilia IPO）

In addition to this Basis of Allotment, we can also see what Press Release or other news said like in this link

Mobilia IPO oversubscribed by 92 times by The Star

According to this news report, it is clear that Mobilia IPO received popular attention from both Bumi and Public category.

The overall oversubscription rate by 92 times is much higher than the around 80 times from the case of Optimax Holdings Berhad IPO.

From my point of view, such a high and abnormal oversubscription rate is absolutely extraordinary, because the furniture industry market is very competitive and the offer period of this IPO is considered short. (This IPO offer period was 1 week, while it took 3 weeks for Optimax and HPPHB)

Of course, there may also be the following points that have contributed to the high participation rate.

• Mobilia IPO issue price of RM0.23 per share - participation costs weren't high.

• Robust performance of HPPHB IPO after its listing which cause the public to subscribe the following IPOs and gain this kind of abnormal return.

When the oversubscription rate of an IPO is too high, both the success rate and the number of shares allotted to each successful applicant will be greatly reduced.

Subsequently, almost all of the applicants will have a high chance to get this much/all shares when the oversubscription rate is very low or undersubscribed. (You may refer to MR.DIY IPO basis of allotment).

Of course, there will be coordination between the two. It seems that some IPOs may increase the success rate but reduce the stocks acquired, or the two may be reversed.

You should proceed to await the update of your IPO application status on the same night after the basis of allotment is released. But beware that the status might not be updated at the same business day, sometime the process could take up to 2-3 business days after release of balloting results.

Endings

Disclaimer : This post is my experience sharing on how to apply IPO through Maybank2u eIPO. I will not be responsible on any gain/loss of your investment decision.