Can someone please explain whats going on with the IPO and how it hurts the stock? I think mple is a $20 stock in a huge market that hasnt even begun to take off yet, i just dont understand how this IPO hurts the stockholders.
Not necessarily. I expect the HK listing to do very well. If it comes at HK$25 then it should rise to HK$30 in a few days. Given the time difference there could be even larger than typical PPS moves in MPEL. One concern is that the banks can arbitrage the trading and we won't be able to. Some mutual funds may be selling to take advantage of the offering. So I expect the Beta will increase even in the face of increased liquidity. But 10-20% moves are common in MPEL. The wild ride continues.
Last time in China ('04) the RMB was about 8.25:1 and it cost about 6 cents to cross the Hang Pu by ferry. Now it's 6.4:1 so it would cost 8 cents if they haven't raised the price. And it cost about 25 cents for a 20oz. bottle of beer. Now it would be about 33 cents. Oh the inflation!