After a hiatus of so many years, and after checking my old posts, I believe that I need to post one to refresh my old blog. Why not I take Sik Cheong as a starter? Should I subscribe to Sik Cheong's IPO in July 2024? Since it's July 31 now, and the closing date for subscription application was yesterday, this is already an academic discussion, yet not too late. 

Is it that every IPO results in handsome monetary gain; something that you can bankroll your investment a few times with a small capital? I beg to differ. Nevertheless, the odds are with the former. Let's just look at a few examples. 

Kucingko's subscription price was RM0.30 per share, but it soared to RM0.84 on the first day of listing on July 26, 2024. It subsided after that to close at RM0.48 as of July 31, 2024. What gives? I would side with the market makers who has huge capital to peg the price, something that most investors are not able to fight with. The business that Kucingko is involved in is something that deals with technology, one that is liked by moms and pops type of investors. Period. 

Take Skyworld as a differing example. With subscription price of RM0.80, it did not see the light on the first day of listing;July 10, 2024. It went down all the way to between RM0.50 and RM0.55 in early October 2024. Property firms do not attract; this should be the case. Why bother to subscribe when you could scoop more at a lower price down the road. 

As for Sik Cheong, I would group it with another company which is also dealing with distributing goods and getting exclusive distributorship license in East Malaysia from big companies. Bring Kim Teck Cheong Consolidated into the picture. There is nothing more to that. Malaysia is a small country with small population. The rest is not worth looking at. 

What is the strategy for Sik Cheong? I do not need to read more about their financials and background. For me, with any successful subscription for their IPO, I would sell on the first day of listing and forget about it. Take profit and run. Period. Feel free to send me emails if you have a differing opinion.