Mewah (MV4.SG) at $1.01, 8.9% off $1.10 IPO price; fall unsurprising given weaker market sentiment, tepid response to offering, which only 1.9x subscribed, priced well below $1.25-$1.55 indicative range.
Not the best time to come to market — STI’s pared all its November gains, weak market volume heading into year-end, also after string of listings in recent weeks.
Also, sheen coming off agri-commodities sector, which perhaps denting appetite for the palm product refiner; Singapore-listed palm plays retracing sharp gains made in run-up to QE2.
“Too many people are hyped up on the commodity sector … (Agri) Commodities prices have been supported by bad weather problems and the weaker US dollar, which has made it easy to buy commodity plays as a hedge against inflation,” says dealer at foreign house.
Quotes tip firm support at $0.95.
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