Friday, June 24, 2011

The XOX Berhad Saga. What Has Gone Wrong - Part 2.

My previous post we were mentioning about the new listing IPO of XOX Berhad. Here are the latest development and information we have received. We went to meet our friends and try to get some information from them. How they end up in taking up such a huge quantity of shares in their hands.

The group of our friends that taking up the placement of XOX Berhad were paying RM0.75 per share. They were taking up a total of 3,000,000 millions ordinary shares of XOX Berhad. That was a huge amount of shares they have taken up. From the information we received, the shares were place out by one of the owner or one of the directors of the company (we don't know how true this information as we were just listen to their explanation).

The reason they taking up the shares so much because it was being offer at a discounted price of RM0.05 per share at the price of RM0.75 per share instead of paying up at RM0.80 per share. During that time they didn't expect they can incurred such a huge losses as they think the most worst scenario they can face at that time was; if the shares is list at the opening price of RM0.80 per share (Initial Public Offering), still they managed to survive because of the advantages of the discounted price.

Total initial placement was 6,000,000 millions shares with the 3,000,000 millions shares were place to my friends. All the 3,000,000 millions shares were divided among their friends. On the listing day they able to sold off their shares in losses (about 2,000,000 millions shares) with about another 1,000,000 shares still left in their hands. Total losses was nearly about RM350,000.00 to RM450,000.00.

Our friends also did argue before the listing exercise, they heard some of the shares were place out at RM0.70 per share and some even at RM0.68 per share. We were quite exciting listening to the story but we can't guarantee the other side of the story whether there is really a placement of RM0.68 per share or RM0.70 per share being place out.

As we can see from the story that we received, it seems there was a fault play being done or been arrange before the listing and after the listing. It seems that XOX Berhad listing exercise was just an exercise to teach us in future that we are having a very bad corporate image on our Bursa Malaysia and in future if we ever come across another discounted situation, we must be well alert.

Let us take this as a lesson to improve and to enhance our knowledge and to learn how our Malaysian share market is? We can't blame that some of the IPOs exercise sometimes didn't guarantee any return but the way the XOX Berhad listing exercise was arrange was totally a surprised for all of us. We are hoping that this matter would not happen again if our governments agencies that involves in preparing or approved the listing exercise and the Investment Bank who do the private placement do take care the public interest. Not just concentrating on making money all the times.

9 comments:

Anonymous said...

Friday 24 June, XOX traded at 26.5sen which is 15sen below market price during that time. So come next week, price will go lower.
Before listing, the sign is there for XOX to go down...one of it is that forecast of 10x increase in revenue for this year alone...this is unrealistic.

Come next week, will the price goes below 30sen?? Time will tell.

http://klse.i3investor.com/servlets/fdnews/198009.jsp

Jackie Lee said...

Wahhhh ..... how come the cross over at such a big discount. 26.5 sen a share ?????

Anonymous said...

Because it is 1Malaysia Mega Sales Carnival now.

HLB said...

Hi MSB

This idiot talked about you & Dali in his latest blogging again -

^V^

Hi Jackie ,did yr friend tell u samgang bought Dijacor-wa @0.38+ on 14/6/2011 ? in less than 2 weeks , we hv made > 30% returns liaooo, is this not making money in quiet mkt ? ^_-

Not making money in quiet mkt referring 2 who ? yr sifu darlie singh ? he called 2 buy EAH @ 0.51 N Muhibah @ 1.83 , how much they last transacted ? ^_- dont 4get oso his JCY @ 1.61 , OMG... JCY is now 0.60+ only, what a call by this "FUN" manager ^_-

Guys, let read what Jackie commented in lulu blog not so long ago >

jackie said...
a number of my friends are subscribers to his so-called private blog. they are complaining to me now as they are caught now with significant paper losses on quite a number of sam's so-called FA picks. i was told his excuse for the loss picks are when market is quiet, even good Qe will not be able to do anything to the stock price. Well do you agree with him? hahaha.
but why are there others who still make money now in the stock market when it is so quiet ?

***

http://samgang.blogspot.com/2011/06/v-hi-jackie-did-yr-friend-tell-u.html

ocean shipping companies said...

Hello,I love reading through your blog, I wanted to leave a little comment to support you and wish you a good continuation. Wishing you the best of luck for all your blogging efforts.

Jackie Lee said...

Thanks for all the support. Will try my very best effort to enhance any updated news around.

TO : HLB

Did I make any comments in lulu blog not so long ago ??? I was wondering when was it ???

Edwin said...

Wish to exchange links with you

http://edwinextremebullrun.blogspot.com/

charlie said...

http://biz.thestar.com.my/marketwatch/charts/l.asp?code=0167~MCLEAN&p1=0.24&p2=0.245&p3=0.26&p4=0.245&p5=0.245&p6=0.005&p7=2.08&p8=14401&p9=3.25------> same same.

Boycott IPO.
Here make a cheat, no jail terms. money made can do wonder. No enforcement,.

Pity all those still ....

Jackie Lee said...

To Edwin.

Already exchange links with you.