1 DOC International Bhd, is not my cup of tea because, apart from wanting to cash out some of the money in the company via a bumper dividend, the major stakeholders seem to be in a hurry to cash out.
CASHING out during the IPO process is normally through shareholders offering their own shares for sale.
CEO Ong Hong Keat, COO Joel Yap Jiang Feng, CLO Chin Boon Keat, and investor Teoh Hui Sim will be selling off a chunk of their shares.
IN total some 238. 98 million shares , account for shareholders cashing out or about 41 per cent of the entire IPO. New shares to be issued are a mere 341.40 million shares.
HISTORICALLY, two-thirds of new listings, with huge offer for sale shares , eventually falls below their offer price, largely because a majority of these companies reported lower net profits post-listing READ : Offer for sale powered IPO, are a bad omen
DATA indicates since 2020, 96 out of 213 IPOs on Bursa Malaysia featured Offer for Sale (OFS) portions making up 30 per cent of total proceeds, have fared poorly.
IN plain English, the I Doc International IPO, is one priced to sell and not perform, banking on the old saying a sucker is born every second.
