Mewah slumped as much as 13.2% yest on trading debut, one of the weakest IPO debuts this year. Poor mkt sentiment, lack of institutional interest cited as causes. Note investors prefer upstream players to downstream and Mewah‘s earnings may be volatile due to exposure to higher CPO feedstock prices…
Sentiment towards Mewah's stock may also have been affected by firm's legal issues. Mewah's controlling shareholder and chairman Cheo Tong Choon, and subsi Mewah-Oils, have been charged with allegedly using 2 false Customs docs to discharge CPO between Oct and Nov 2003. Mewah-Oils has also been charged with theft of two batches of CPO from Lushing Traders. Msian lawyers representing them are said to view these charges as having no merit.
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