I just want to share you that I have been included in COL Financial raffle for IPO of PBB. I have received the following email today.
Please be informed that we have allocated 500 shares of PHILIPPINE BUSINESS BANK with the amount of PHP 15,750.00. We have debited your account accordingly. Thank you. COL Financial Group Inc.
It feels good to be included from the 151,200 shares that was raffle out from COL..I came to know that there are lots of investor in the Facebook group where I belong that received a regret letter from COL Financial. But for the newbie in stock market, you might be asking on what is IPO? IPO means Initial Public Opening. In the normal scenario, buying IPO stock is always buying bargain stocks, but there are also time that upon completing the IPO, the value of stocks goes down. Take for example on what happen when Facebook have it’s IPO, it was first in the rise then suddenly it fails lower than IPO. In the local market, it also happen to CAL (Calata).
I have also taken the following report from DA Market Securities Inc.into consideration, when I made my request to be approved for this IPO as follows:
At 2011 actual EPS of 2.17, the P/E will be at 14.5x. However, using trailing 12 month EPS or 2012 est. EPS of 2.39, P/E is at an improved 13.2x.
After the offer, Book Value (BV) will increase to 21.58, translating to a Price-to-Book Value of 1.46x
Considering improved market conditions and optimistic outlook on the industry’s growth momentum, the company lists at an attractive valuation. Recall that EW listed in April 2012 at a price of 18.50/share, and using 2011 actual EPS of 1.54, the offer was at 12x P/E. BV 13.72, 1.34x PBV.
Later I will report the result of this investment. And I hope it will goes up.
The Tentative listing date will be on February 19, 2013. I hope I made a right decision in getting PBB IPO.