AWC’s True Self Reflects on the Share Price

In a little over a week, Asset World Corp Public Company Limited (AWC) was one of investors’ main targets due to the nickname “Super IPO” with humongous market capitalization, not to mention its owner is Charoen Sirivadhanabhakdi, one of the top business tycoons in Thailand.

 

With a market cap near 200 billion baht, AWC entered SET50 using the “Fast Track” regulation, allowing newly listed securities with a market cap higher than 1% of the entire stock market or with the market cap valued at top 20 in SET50. No company has ever done that before.

This phenomenon had investors all hyped on AWC.

 

Nevertheless, some investors were afraid to subscribe the IPO while some such as institutions and private funds. AWC also had greeshoes options to support incase the share price went lower than the IPO price on its first trading day, which led to a gain of ฿0.05/share to close at ฿6.05/share on October 10.

The buying pressure kept on pouring in and hiked AWC’s share price to its highest at ฿6.80/share on October 17.

AWC had turned into a wonderful share that gave a good return to investors.

More importantly, Singapore GIC Private Limited had purchased 7.4191% of AWC’s voting rights from Merrill Lynch (Singapore) Pte. Ltd. and replace the latter as the 4th major shareholders, giving more charm to AWC.

 

But after no new positive factors to support, a selloff is evident. AWC fell ฿0.25/share or 3.68% to close at ฿6.55/share on Friday, October 18 while continued to plunge for another ฿0.40/share or 6.11% to close at ฿6.15/share on Monday, October 21.

AWC, which entered the market with P/E 200x and P/BV 5-6x, started to get carried by the selloff-wind bit by bit.

The rebound on October 22 for ฿0.10/share or 1.63% to close at ฿6.25/share could be none other than buying the dips.

 

Will AWC take another fall soon? No one knows. But the expectation of seeing AWC at a level lower than its IPO could be difficult since there are greenshoe option to support the share.