KUALA LUMPUR (May 18): Shares of Malakoff Corporation Bhd were actively traded this morning and fell below its initial public offering price of RM1.80.
At 9.08am. Malakoff fell one sen to RM1.79 with 7.37 million shares done.
Meanwhile, PublicInvest Research has maintained its “Outperform” rating on Malakoff with a target price of RM2.18 and said the current weakness in Malakoff’s share price provides an opportunity for investors to accumulate.
In a note today, the research house said Malakoff’s shares performance was lukewarm on the first day of its relisting on Bursa Malaysia last Friday due to heavy selling
pressure, which was contrary to house expectations.
“Management issued a press statement last Friday evening denying that the group was keen in acquiring power assets of Edra Global Energy.
“We believe the knee jerk reaction is temporary and continue
to like Malakoff based on its IPP business model which provides the Group with consistent and sustainable revenue streams of
income throughout the PPA concession period with fuel cost-pass through features.
“We therefore reiterate our Outperform call on Malakoff with a target price of RM2.18. The current weakness in Malakoff’s share price provides an opportunity for investors to accumulate,” it said.