PAVREIT IPO
Opening time for retail : 14 Nov 2011,10.am
Closing time for retail : 21 Nov 2011, 5pm
Opening time for retail : 14 Nov 2011,10.am
Closing time for retail : 21 Nov 2011, 5pm
Can apply online through Maybank2u.com<-------I used this, not sure what are the others
Stepping into a relatively new area for myself I've spent the whole of October 2011 with my buddies CW Chin and YH Kuan taking chances and learning about the stock market. Actually it wasn't that difficult as it is indeed what I am learning throughout my tertiary education life.
Those 2 have definitely taught me loads regarding shares and gave me the exposure I actually needed. Prior to that, I can say that I have not gained a single practical exposure to what shares are really like.
Back to my topic. Went to Dataran Maybank at Bangsar to open a CDS account. What is CDS? It's short for Central Depository System. Something one require to be able to trade stocks or shares online. In other words, it gives you the ability to own and control your very own portfolio. Why of course, there are definitely risks associated with share trading.
So, upon being made known to be regarding the Pavilion REIT offering IPO, I wasted no time and decided to waste a day(to not study) and opened a CDS account immediately. Hold on, someone asked what is REIT and IPO? I'll just give their full name here and hopefully they are self explanatory. REIT stands for Real Estate Investment Trustand IPO stands for Initial Public Offering. Well, I got to admit, this seems to be a jargon for one who aren't really associated with these stuffs.
Pavilion REIT or PAVREIT to me seems like a prospective investment. At a price of RM0.88, it seems like a worthwhile investment with promise of at least 90% distribution. Go grab the prospectus and have a look.
I'll just list down some of my main points which made me to decide on this.
1. It's a shopping mall located in the heart of Kuala Lumpur where it's main target is upper market consumers.
2. Though there may be competition from suburban malls outside city area, those didn't really pose a threat as the mall's income is not exactly from customers, but from the tenants of the mall. And yes, being at the place it is located, I cannot believe that there are no retailers queuing to open in Pavilion.
3. The profits for FYE 2010 is RM202m and Total Liabilities are atRm805m. The TL to profit ratio is 3.98 which means PAVREIT can easily pay off the debts within 4 years, assuming the profits are maintained at RM200m level.
4. It has a relatively low level of gearing, approximately 20% if i am not mistaken.
5. It has a stable compounded annual growth rate of 8.5% which is also a good thing to know.
6. Is has a promise of at least 90% distribution on a half yearly basis. Which ultimately mean stable dividend income.
Well, those are what I have in mind for now. I didn't have much time to flip through the whole prospectus and analyse it word by word.
Applied for the IPO but wasn't sure whether will I be selected for it or otherwise. Fingers crossed that I actually do get it.
Go check it out before the closing date! =)
Disclaimer : Information shared here are only for informational purposes and the author do not bear any liability for those who relied on the information obtained from here. Investments are a risky thing and one should rely on their own judgement in making decisions.
