MRDIYT or MR. D.I.Y. IPO disappoints.

Thailand just completed a major new international IPO, SET listed under symbol MRDIYT or MR. D.I.Y. HOLDING (THAILAND) PUBLIC COMPANY LIMITED.  655 million shares were offered, at 8.60 Baht. Same price for everyone!

It was a soft-flop as it opened weak and then just barely closed at its 8.60 IPO price. One reason was because it was overpriced to begin with. Now presently at 8.30 Baht its trailing p/e is shown at 23.  Because this was international-offering on a very high quality company I thought the Investment Bankers would be more careful on its pricing. They were not in my view.    DIY prospectus reads so very positive and extremely detailed... it sure leads in what its doing but when you compare it to say 7-Eleven (the food equivalent) and -cousin-others- like HMPRO p/e 13, DIY is a great company, but its stock price over-reflects that.  Besides, speculative DELTA (p/e 145) getting most all the attention, the SET has of late returned being bearish. IPO's do no fare well in bearish stock markets....even while DIY is a defensive choice!   The SET/SEC and BOT have lately made statements on wanting to entice more IPO listings on secondary companies but fail to recognize the IPO market has for long over priced IPO's only to count on speculative over hyped activity on its first trading day, then to languish thereafter like most have.  This is in my view not a sustainable business model.