Astro's stock price closed at RM2.74 today, the third day of trading, well below its offer price of RM3.00 to retail investors.
This is a clear reminder that IPO stocks don't just go up, they might actually come down. The surprising thing about Astro is that it fell so soon, i.e.on the second day of trading.
I wrote an article on my malay blo,g observing that many stocks fall below their IPO price (click here). However, the drop usually occurs over time, when people start to forget about their 'newness'. Those that drop soon are usually saddled with problems, but this is not the case with Astro.
What does this mean for the small investor? It means you can buy Astro at a lower price, without having to go through the IPO application and balotting process.
In fact, you can buy the stock now cheaper than many institutional and cornerstone inves…