BIG NAMES CUT BOTH WAYS

Big Names Cut Both Ways

In The Edge dated 12th. Oct. 2009, Kathy Fong wrote on MORATORIUM on IPOs cut both ways. Of course Bursa Malaysia wants more participation whether it is local or foreign investors. When it comes to listing, the promoters and underwriters would look for big names to participate in their IPOs. The bigger the better !!.

In that issue of The Edge the names of the Quek family and the Kuok family (Wilmar) were mentioned. Apparently, the Quek family through Guocoline Group Management Co.Ltd. sold Multi Sports and the share price came down as reported in The Edge. In the Cover Story of The Edge of the same date it was reported that the Kuok group through Wilmar expressed interest to subscribe for 61.6 million new shares in THREE A at 75 sen each for RM46.2 million cash. An investment of RM46.2 million by Wilmar which is small to the Kuok family has brought much cheer to this counter. The share price rose from 80 sen on 25/09/2009 to RM1.58 on 15/10/2009. Meanwhile the Securities has queried THREE A on this price movement.

So BIG NAMES do cut both ways and small timers who are inaccessible to all information must be alert and beware of the effects.