Astro: Cornerstone investors which collectively hold about 240 million shares that are not subject to any lock up period could be among the sellers. These investors are big funds and probably sold down their stakes, after AStro’s tepid response on its maiden day of listing. Approved bumiputera investors under the MITI portion, who taken their allocation with financing could also have sold their shares. Some brokerages also provided aggressive financing were also forced sell due to the lackluster performance.

The absence of EPF was a key reason for the underperformance. The EPF usually took up a substantial stake during the book building stage of IPOs. However it failed to come abroad Astro as it felt that the fair value was about rm2.80. If EPF had participated, the fund would have gone to the market to support the shares and average their cost. Other funds normally don’t go to the market when the stock is listed.

Other big funds missing from the book building included LTH and KWAP. They did not subscribe for Astro shares as it as non-syariash compliant. These funds are instrumental in supporting the share price performance of IPOs.

Nevertheless, the EPF might come abroad in the next few days as it is looking to purchase AStro shares at rm2.70 apiece.

Astro offered up to 1.52 billion shares in its IPOs, representing 29.2% of its issued and paid up capital. Under the institutional offering, 597.7 million shares or 11.5% stake were offered to bumiputera investors under MITI’s portion, while 660.7 million shares or a 12.7% stake were offered to selected local and foreign institutional funds.

About 430 million shares or 8.3% stake in Astro were taken up by cornerstone investors portion are not subject to a lock up period while the rest are tied down for a period of three months.

Muhibbah: The High Court has ordered a provisional liquidator to be placed in APH – an asset that CIMB intends to auction off to a white knight. Earlier CIMB had called for bids to sell the rights to develop the project, which entails the building of petroleum storage, blending and distribution terminal. Insiders say there may be only a few proposals as many are skeptics as to whether CIMB can sell the project. Moreover, both Muhibbah and MMC Corp had opposed this sale by CIMB. Involved in the melee is the PTP, a 70% unit of MMC Corp.

MAHB/Airasia:Airasia is now (Oct 2012) positive on its impending shift to the new LCCT, KLIA2 in Sepang. It will move its operations to the new terminal as soon as it is ready.

Alam Maritim: Speculating that it will be clinching several contracts it had bid for. The contracts could be it Pan Malaysia contract and some other risk service contracts soon. On a year to date basis, it has secured OSV contract wins of rm316 million.

MISC: Market observers hope that Petronas’ bid for Progress Energy would help MISC play a key role in transporting LNG, thereby elevating its earnings over the longer term. But while Canada’s move in blocking Petronas’ bid came as a surprise. Petronas still have 30 days to appeal to provide additional concessions’ before the Canadian government makes its final decision. Petronas is reportedly appealing the ruling. Whatever the case, Petronas will still be involved in the development of shale gas after closing the deal with Progress Energy in Aug 2011.

CSL/Pelinak:China Stationery Ltd (CSL) is buying a 9.79% stake of Pelikan International Corporation Bhd for RM50mil via a share swap, which would enable both companies to collaborate to grow the business. It was acquiring the stake, comprising of 50 million shares, from Mahir Agresif (M) Sdn Bhd and PBS Office Supplies Holding Sdn Bhd, and Persada Bina Sdn Bhd. The purchase of the Pelikan shares would be satisfied via the issuance of up to 47.169 million new CSL shares at an issue price of RM1.06 per share.