Friday, 20 May 2016

Manulife US Reit - Feeling before and after

What a different feeling.

Yesterday I felt sad and frustrated that I got zero allocation for the Manulife US Reit IPO units.

Today I feel relief that I got zero allocation for the Manulife US Reit IPO units.

It was surprising to me that Manulife US Reit opened trading at USD 0.82, even below its IPO price of USD 0.83.  It ends the day at USD 0.79, 4.8% lower than its IPO price.  Well, I think the market has spoken that the Reit was priced too high.

Surprising on Manulife US Reit's performance as today is a green day for the STI index.  Also, not too bad on my Reit counters too as only Fraser Comm Trust declined today.

I may pick up some Manulife US Reit if it falls to a more appetizing level.  No hurry as I think the first dividend distribution from Manulife US Reit comes only in March 2017. 

16 comments:

  1. Replies
    1. Hi The Sun,

      Yes. A blessing indeed.

      Cheers,
      Farmer.

      Delete
  2. i agree no hurry.
    i think this reit should be "HIT & RUN" case.
    So that don't have to subject to FX risk.
    Of course not vested!

    ReplyDelete
    Replies
    1. Hi temperament,

      No hurry. Just wait and see.

      Cheers,
      Farmer.

      Delete
  3. I am surprised that you werr surprised. It means you are a "newbie" in IPO. I did not subscribe for a few reasons and believed it will drop below IPO price. 1. P/B is > 1 aka Overpriced.
    2. Max holding is 9%, will not interest big boys who want control.
    3. Dividend is just a projection.
    4. May lose its US Reit status which will drop dividend to 3 to 4%.
    5. No lock in period for all conerstone investors except DBS. They get a discount of say 10 to 15% as conerstone upfront. Retail paid for their free lunch. So typically they will sell on first few week and pocket that gain esp when they cannot own controlling stake.
    6. Wont go on...some will hate me. Just too many disincentives for retails that I ignore this IPO.

    ReplyDelete
    Replies
    1. Hi Henry,

      Yes. I seldom participate in IPO. I pressed this time because I wanted the US exposure. Surprised me that on a green day, would expect them to open a bit higher or at least on par to the IPO price.

      And why it would lose its US Reit status?

      And the day after, many 事后诸葛亮 are born. Haha.

      Cheers,
      Farmer.

      Delete
    2. Repeat -I skipped this IPO with 8 negatives found. You decide who is 事后诸葛亮 if you are truly a wise investor or just another run-of-the-mill blogger. Good luck to your investment journey.

      Delete
    3. Hi Henry,

      事后诸葛亮 just a general statement. No offend intended. Is it always true that cornerstone investors get 10-15% cheaper?

      Cheers,
      Farmer.

      Delete
    4. It varies. Retails are always the lunch...just imagine... if you have good deals, would you share with strangers or among your circle of people? Wonder why it was listed in the first place? That leads to the next 2 negatives which I would not share here. I used to work in LA.

      Delete
  4. Hi Henry,
    ".They get a discount of say 10 to 15% as conerstone investor upfront."

    Wow, i don't know about this until now?
    True or not?
    Is it always like that?

    i was always wondering why so many want to be conerstone investors upfront besides the banks that collect fees.
    And yes no lock in period already tell us something "fishy".

    ReplyDelete
    Replies
    1. Why did so many IPO tanked? This is an open secret. Too many negatives in this issue (I did not list all of them yet) that make me stayed away. I could probably guess what is going on behind the scene.
      For me, wealth preservation is more important than passive income.

      Delete
  5. Don't forget underwriters for IPO can become the "undertakers" if the IPO flops.
    So far have it happened?
    Don't think so!
    Underwriters and Issuer just say market is not ready due to one reason or another.
    We will IPO again when market is more conducive.
    Actually, it is usually due to they over priced the IPO hoping the market is stupid enough to take the baits.


    The rats and the snakes living in the same "nest" lol!
    They say stock Exchange existed for the companies not the Public is true.

    ReplyDelete
  6. I have heard of 30% with longer lock-in for desperate cases.

    ReplyDelete
    Replies
    1. Hi Henry,

      We small investors always lose out. Hmm. Sad fact.

      Farmer.

      Delete
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    ReplyDelete