Emaar MGF IPO come-back: may relaunch IPO

Emaar MGF, which has cancelled its IPO due to high market volatility and poor subscription, is all set to come back to the stock markets once again.
Hardly 1.5 months, and the stock market is looking good again to the IPO hungry companies. Don’t we see any randomness here? Can someone predict any such thing?

And why shouldn’t the companies come to the market again and again, failure after failure? Stupid investors are there to make the companies rich. Whether it is the Zero Watt Reliance Power Company having a devastating listing and finally going for a Bonus Share plan, or whether it is the Wockhardt hospitals and other IPO including Emaar MGF cancelling the IPO’s at the last moment. All these things were led by investor madness. The GREED to earn a quick buck with hardly any effort makes the investors take the IPO route. Hardly anyone knows how to value a company. My friend is applying, so should I. My relative is taking a house loan, so should I. My junior team-mate in office comes in a mid-size luxury car, so should I take a car loan. No one cares about what is the actual cost and risk involved.

Very recently, the Reliance Petrol Pumps have been shut down. The reason – they were not able to offer competitive prices as compared to the government backed oil companies, which enjoy the subsidy which can be as high as 14 Rs for petrol and 8 Rs per liter of diesel. Investors blindly trust Reliance. Didn’t the Reliance Managers see this risk while planning more than 1400 petrol pump outlets in the country? Worst is the case for the dealers who have taken the dealership. They have given their lands, built the petrol pumps, invested heavily in the name of Reliance. All ending up in a big loss.

Even Reliance Fresh is running is losses. Probably that’s why they are planning to come out with the Reliance Fresh IPO. Probably, they know that investors are greedy fools- they will pay anything you demand.

I don’t know what has changed for Emaar MGF in less than 1.5 months. Neither I see any changes in valuations of the company, nor do I see any stability in the market. It will be foolish to predict anything. Yet, the nes is that Emaar MGF IPO may be relaunced.

Try your luck, see what this random stock market has for you!

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LifeWatch Cancels IPO

Lifewatch corporation became the latest firm to cancel its IPO.
It has joined several of the firms which have canceled the IPO in the recent past amid high market volatility and uncertainty.

The primary purpose of the IPO was to use the money collected through the IPO for repaying the debt. Somehow, I do NOT usually like this kind of idea of using the public money to repay the debt. Though the company management has said that this cancellation of IPO has been done as the company board believes that it is not in the interest of the company to come out with its IPO, but the main reason that seems to me is that the high market volatility in the stock markets may have been seen as hampering the money collection process.


LifeWatch Corp., which makes remote heart monitoring devices, has canceled its proposed initial public offering, according to a Securities and Exchange Commission filing on Friday.

LifeWatch first registered for an IPO in December 2006. On Friday, LifeWatch said its board determined that the IPO is not in the company's best interests but did not provide the reasons for that decision.

The Buffalo Grove, Ill.-based company planned to use the IPO proceeds to repay about $27.7 million of its outstanding debt, to launch and market services for the LifeStar ACT cardiac event monitoring device and for other corporate purposes.

LifeWatch is a subsidiary of Card Guard AG, which trades on the SWX Swiss Exchange.

Cowen and Co., Jefferies & Co. and Piper Jaffray were expected to underwrite the IPO. LifeWatch had planned to list its stock on the Nasdaq Global Market.

Evergrande IPO Cancelled

It's not just India and USA where the IPO's are being cancelled. It's also happening across the globe.

The Evergrande IPO (read review of Evergrande IPO) became the latest victim of the market volatility and market sentiments and was cancelled from making a debut in the HongKong Stock exchange.

The $2.1bn Hong Kong IPO, which was supposed to hit the markets very soon, was finally called off. The owner of the Evergrande Constructions, was supposed to list his name among the world's richest individuals had the IPO been listed at his expected price. but unfortuantely, things work randomly and the Evergrande IPO came to a stand still and was finally cancelled.

The market in Hong Kong has plunged in the last few weeks following a string of bad news from the US, including the collapse of Bear Stearns. The benchmark Hang Seng Index has dropped 24.1 per cent since the start of the year.

Almost 8-9 companies have cancelled or delayed their IPO listing this year in HongKong, given the bad news and market conditions in HK as well as in US. The company, which began bookbuilding on March 6, is understood to have decided to delay the IPO after failing to receive enough orders from retail and institutional investors by the time subscriptions closed on Wednesday night. This is in spite of the developer extending the subscription period of its retail offering by one day.

So for the moment, there is no respite for the IPO's waiting to come into the market.

Wockhardt Hospitals IPO cancelled called off

It’s official now, and confirmed. Wockhardt Hospitals have cancelled the IPO and it will not be going further with the public listing. The reason for cancellation was the the really poor response to the IPO.
Interestingly, the company has no plan in place to tell what they will do to collect the money they were supposed to receive from this IPO. Whether they will go with the private equity players, or will they take a loan, nothing is in place now.

Another interesting part is that among the different segment of subscribers, it was the Retail subscribers portion that got the maximum response (in terms of multiple of subscription). Rest all QIB, HNI, etc were really really meager.

The management attempted all tactics to attract investors -lowering the price bank, extending the IPO offer period. But investors just did not respond.
Emaar MGF situation is no good either. They have extended the bidding date to 11th February and reduced the price by Rs. 10.

Another issue that is currently open, SVEC Construction has not received EVEN A SINGLE BID in its QIB portion as on 7th Feb according to NSE data.
Fantastic way the markets work!
.

Wockhardt is promising the investors to refund their money in15 days. 7 days already for the issue to open, another 15 days for refund, for a cancelled IPO. Who will loose on the interest for these 23 days? That’s why it is said – MARKETS WORK RANDOMLY. Play it safe!

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