AirAsia is contemplating a dual listing, either in the US or Hong Kong, spurred by demand for its shares here from foreign investors. Earlier reports stated the low-cost carrier was looking at Thailand as an option for a secondary listing, in an effort to become a full-fledged Asean airline. Now, however, the company has set its sights on more mature markets, considering strong buying interest in AirAsia shares from investors in the US and Europe. According to data compiled by Bloomberg, some 30.37% of AirAsia shares are held by the US investors, while the rest are mainly in the hands of investors from Europe.
Significance: As low-cost carriers appear to be the flavour of the day for foreign investors, the option of a dual listing in established markets such as the US and Europe would help the company gain more international visibility and enhance its market share and industry standing.
SEGi On Course For Record-Breaking Net Profit
SEG International (SEGi) is on course to register a record-breaking net profit for the year just ended 31 December 2010. Up to the nine months ended 30 September, SEGi posted a net profit of RM31.3m, eclipsing that of RM14.4m registered in 2003. The quantum leap in net profit was possible because SEGi had started to cater for higher margin courses such as in the medical sector, engineering studies, creative arts and early child education studies. SEGi expects that the growth in revenue to be sustainable and will be exponential. As it has always been SEGi’s general intention to reward shareholders with a significant amount of its cash reserve in the form of dividends each year, they have recently announced a special dividend of 14 sen per share.
Significance: The strong financial performance of the company enables them to be in a strong financial position with a large cash reserve, which can be utilised for the company’s future expansion plans and also as working capital.
Demand For New Houses To Surge
There will be a surge in demand for new houses in Malaysia as Asian property investors look for properties, and expatriates come here for projects under the Economic Transformation Programme (ETP). In addition, Asian investors are returning as Malaysia still offers the best value for properties, as compared to Singapore and Hong Kong where the property price is about five times more expensive. According to Knight Frank, Malaysia is the prime investment location in Asia because of its stable property market and relative affordability. Many investors from Singapore, Hong Kong, Indonesia, Taiwan, South Korea and Japan are coming to the market, rich with cash, and with an appetite for luxury properties in Kuala Lumpur.
Significance: The influx of foreign investors would bring about a multiplier effect in many other industries, such as tourism and retail. Eventually, it would encourage various development in the country, such as transport. In line with this, employment rate and the domestic economy would be given a strong boost. For the latest updates PRESS CTR + D or visit Stock Market news Today
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