|Laman Webantu KM2A1: 3965 File Size: 5.3 Kb *|
AWSJ: Shares of Time dotCom Slide on Trading Debut
By Leslie Lopez
14/3/2001 5:59 am Wed
[Rencana ini menyebut kemungkinan EPF dan dana awam menyokong
80% saham time dotCom (yang tidak terjual). Ketidak telusan kerajaan
dalam hal ini amat mengecewakan. Kaedah perakaunan dana awam
menyebabkan sukar menyuarakan bantahan kerana untung rugi hanya
dikira bila ia bertukar tangan. CIMB pula enggan menjelaskan kepada
siapa saham dipindahkan. Time Engineering begitu mudah menjadi syarikat
bebas hutang kerana segala-galanya sudah dirancang dan ditutup muslihat
Shares of Time dotCom Slide on Trading Debut
By LESLIE LOPEZ
Staff Reporter of THE WALL STREET JOURNAL
KUALA LUMPUR, Malaysia -- Investors dumped the shares of Time dotCom
Bhd. on their first day of trading, battering the biggest Malaysian
stock market offering since Asia's 1997 economic crisis.
Time dotCom stock took a dive as soon as trading began on the Kuala
Lumpur Stock Exchange, opening at 2.50 ringgit (66 U.S. cents) a
share, or 24% below its initial public offer price of 3.30 ringgit.
The stock ended the day even lower, at 2.43 ringgit, down 26% from its
IPO price. The broader Malaysian market declined marginally, with the
benchmark composite index closing down 6.37 points, or 0.9%, at
While Time dotCom's weak debut was widely expected, market analysts
are now focusing their attention on the fate of the IPO's investors
and especially the underwriters, who wound up with almost 75% of the
571.7 million shares that Time dotCom offered for sale in late
Public investors subscribed to just 25% of the IPO.
Commerce International Merchant Bankers Bhd. -- a unit of Malaysia's
second-largest banking group, state-controlled Bumiputra Commerce Bhd.
-- and Perwira Affin Merchant Bank Bhd., another state-controlled
bank, were the chief underwriters for the issue, which raised 1.89
billion ringgit for Time dotCom's parent company, Time Engineering
But Malaysian banking executives and government officials privately
said that as much as 80% of the IPO not purchased by the public was
sub-underwritten by government agencies, including several
government-managed pension funds. Among them, they said, was the huge
Employees Provident Fund, to which all salaried Malaysians contribute.
Commerce International Merchant Bankers executives have confirmed that
a large chunk of the Time dotCom shares were sub-underwritten. But
they have declined to reveal the exact amount or the parties who
purchased the stock.
Malaysian bankers said the behind-the-scenes sub-underwriting removed
the risk of losses the underwriting banks would have incurred in the
event the Time dotCom shares fell below their IPO price. Malaysian
accounting standards require that financial institutions, including
banks, value their equity holdings at current market prices, which
means they must disclose any paper losses on such holdings in their
quarterly financial statements.
In recent years, government pension funds have adopted a more flexible
accounting approach. They value their equity holdings at cost, on the
grounds that they are considered long-term investments and that the
stocks' value shouldn't be dictated by volatile market swings. Under
that accounting method, the pension funds only record losses or gains
on their equity investments when they are sold.
The likelihood that state agencies may be holding a large chunk of
Time dotCom stock reflects the malaise afflicting Malaysia's corporate
sector, which has been slow to recover from the Asian crisis. It is
also an indication of many investors' disdain for companies perceived
as being linked politically to the Malaysian government, which critics
accuse of bailing out well-connected companies.
Time dotCom, which owns an extensive fiber-optic network and operates
a small cellular-phone business, is part of the sprawling Renong Bhd.
group of companies. Controlled by Halim Saad, a businessman with close
ties to Finance Minister Daim Zainuddin, Renong is a conglomerate that
was once the business arm of Prime Minister Mahathir Mohamad's
political party, the United Malays National Organization.
Time dotCom's IPO price of 3.30 ringgit a share was set more than a
year ago, at a time when telecom stocks were in vogue and the
Malaysian market was in an upbeat mood. Investment analysts said that
Time Engineering, of which Renong owns 46%, should have revised its
IPO price if it wanted a more favorable market reception. But Time
Engineering and Renong weren't prepared to do so, apparently because
the companies were determined to raise enough money to reduce the
group's large debt burden.
The proceeds from the IPO made Time Engineering the only debt-free
telecommunications company in the country.