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| What price will AIRARABIA shares list at? |
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33% |
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22% |
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| Total Votes : 9 |
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sharewadi
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MaaaD
opportunist
Joined: 15 Jul 2006
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Posted on Thu 05 Jul 2007 18:51 by MaaaD
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| 17th of March ? is Air Arabia offering time travel too now ? |
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sharewadi
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Posted on Thu 05 Jul 2007 20:04 by sharewadi
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| MaaaD wrote: |
| 17th of March ? is Air Arabia offering time travel too now ? |
Ah, sorry!
Have corrected topic title 
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indigo
horse trader
Joined: 10 Jul 2007
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Posted on Tue 10 Jul 2007 11:49 by indigo
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| Shuaa is much to be blamed for not presenting facts and delaying tactics. Thats why now they need EFG to repair the damage. So much of negative comments on Air Arabia esp by people who don't know much about balance sheets, etc. |
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indigo
horse trader
Joined: 10 Jul 2007
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Posted on Tue 10 Jul 2007 11:57 by indigo
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| With reference to Dubai FM the ratios never looked good on most of the stocks. Its a growing / profitable / dynamic airline which deserves better response. It has no compitetion in this region and its flying radius worth a mention most airlines who undercut prices are slowly turning red. Air Arabia's great performance to date gives much hope for the future. Let it land first. |
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sharewadi
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Posted on Tue 10 Jul 2007 12:11 by sharewadi
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Hi indigo, welcome to DubaiShareTalk  . Interesting comments you've added...
| indigo wrote: |
| Shuaa is much to be blamed for not presenting facts and delaying tactics. |
Really? The press release from Shuaa about Air Arabia IPO launch sounded upbeat (17 Mar 2007). What misrepresented facts and delaying tactics do you think Shuaa Capital (SHUAA) is responsible for?
| Who wrote this: |
| Rody Yared, Head of Syndicate at SHUAA Capital, said: 'We anticipate significant demand for Air Arabia's IPO due to the strength of the company's fundamentals and its strong financial footing, which will spur demand among both local and international institutional investors. Air Arabia also enjoys a strong brand name, which makes it an attractive investment across the various investor segments.' |
And Shuaa's research report about Air Arabia sounded encouraging, according to them:
| Who wrote this: |
| In its research report on Air Arabia, SHUAA Capital projected encouraging performance for the low cost carrier based on the company's competitive strengths, projected financial performance, and general economic and demographic conditions. |
The Gulf News hinted that Air Arabia was to blame for listing delays.
| Who wrote this: |
Sources at Esca, meanwhile, hinted that Air Arabia might not have submitted its paperwork on time.
Such delays do affect investors, said Fahd Iqbal, strategist at EFG-Hermes in Dubai. "This wait has led to uncertainty, which is obviously negative for investor sentiment," he said. |
| indigo wrote: |
| Thats why now they need EFG to repair the damage. So much of negative comments on Air Arabia esp by people who don't know much about balance sheets, etc. |
Like sharewadi for example 
I'll admit I've been negative on the price of Air Arabia shares in several posts - but based on profit expectations given not only from Shuaa, but Air Arabia's CEO himself.
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indigo
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Posted on Tue 10 Jul 2007 12:24 by indigo
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SHAA pre IPO Report: It looks like they prepared a report which sounded too optimistic and where people could find faults.
As far as i know Shuaa is responsible for preparing and listing of the IPO. Air Arabia is not the financial/Stock market expert. Shuaa were the ones who announced on the DFM news post that air arabia would be listed If they were not involved in its listing why do they announce its listing. Any comments by air arabia CEO should not be considered. He is learning to deal with shareholders and stockmarket. |
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sharewadi
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Posted on Wed 11 Jul 2007 09:54 by sharewadi
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| indigo wrote: |
| Air Arabia is not the financial/Stock market expert. |
No, but they are the expert on their own financial situation, or should be. If they're not, then I would be concerned.
| indigo wrote: |
| Any comments by air arabia CEO should not be considered. He is learning to deal with shareholders and stockmarket. |
What  ? That's an interesting approach to evaluating a company for investment purposes, which I disagree with. I may be skeptical about comments from a CEO/Chairman, especially when they contradict each other, but I would never ignore them.
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sharewadi
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Posted on Mon 16 Jul 2007 16:01 by sharewadi
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| DFM news wrote: |
| 16/07/2007 Reminder: Listing shares of Air Arabia on DFM and trading commences on Tuesday 17 July 2007. |
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sharewadi
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kerala33
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Joined: 17 Jul 2007
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Posted on Tue 17 Jul 2007 07:41 by kerala33
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I feel it will start at 1.5 and move onto 2 or more.
There may not have been great demand for the IPO but, it will be the only share below 2dhs. available for Foreigners. As we have seen Aramex & Tabreed rise and also Gulf NAV, which was not available to expats.
I see a lot of previous weeks flat and down trend due to the Air Arabia launch and also the results. The results didn't excite the masses.
Hold on to your seats today and watch as air arabia gets its revenge. |
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sharewadi
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Posted on Tue 17 Jul 2007 09:47 by sharewadi
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Poll closed (or should be) with a third of the votes picking 1.25-1.50 as opening day price.
Pre-open trading at 09:45 has AIRARABIA shares at 1.10 with 27m shares in the sell queue and about half that number in the buy queue. I don't see Air Arabia shares hitting 1.50 anytime soon. This will probably disappoint many investors.
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iawaaa123
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Joined: 13 May 2007
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Posted on Tue 17 Jul 2007 10:42 by iawaaa123
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| 10% return on investment in 5 months is still not that bad. I think investors will be happy with the opening price. |
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sharewadi
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Posted on Wed 18 Jul 2007 08:29 by sharewadi
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| iawaaa123 wrote: |
| 10% return on investment in 5 months is still not that bad. I think investors will be happy with the opening price. |
Well, 8% since there was a 2 fil per share IPO fee. And if an investor was 5 times leveraged then short term borrowing costs might have taken out another 4-6% leaving a 2-4% return.
Air Arabia (AIRARABIA) share price closed at 1.10 dhs yesterday after first day of trading, up from par value of 1.00 dh. About the smallest increase on flotation in the UAE that I can remember. Close to 800m dhs worth of trading went through.
I'd be interested in knowing if there are investors out there who bought Air Arabia IPO shares? Are you happy with the 10% increase on par value yesterday?
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sharewadi
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Posted on Wed 18 Jul 2007 08:32 by sharewadi
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And Air Arabia said this about themselves yesterday, before trading finished (nothing significantly important in this bit of PR)...
| Press Release 17 July 2007 wrote: |
Air Arabia debuts on the Dubai Financial Market
The Dubai Financial Market (DFM) has announced the listing of Air Arabia, incorporated in Sharjah, United Arab Emirates. Company shares begin trading today under the trading symbol 'Air Arabia', which will appear on DFM screens, trading systems and publications.
The listing of ordinary shares of Air Arabia was finalised and approved by the DFM in collaboration with the Emirates Securities and Commodities Authority. Mr. Rashid Al Shamsi, Deputy Chairman of Dubai Financial Market, attended the listing ceremony.
Ownership of Air Arabia's shares is available to UAE and GCC nationals up to 100 per cent, while foreigners are allowed to own company shares at a maximum of 49 per cent.
Air Arabia, the first and largest low cost carrier in the Middle East and North Africa, provides high frequency services on short- and medium-haul point-to-point routes within the Middle East and North Africa (MENA) region, and the Indian subcontinent, from its base at Sharjah International Airport. The company was incorporated in March 2003.
Along with international commercial air transportation, Air Arabia provides a number of ancillary services, including travel agency and tourist related services, passenger transport services, air cargo services and document transfer services.
The company's authorised capital is AED 4.66 billion while its paid-up capital is AED 4.66 billion. The company has issued 4.66 billion shares, with each share valued at a par value AED 1.
Essa Kazim, Chairman of DFM, said: 'Air Arabia is the 52nd company to list its shares on the DFM and the fourth within the 'Transportation' sector. We are proud to see the first listing of an airline on our bourse, which is an indication of the successes of our efforts to widen investment options across sectors for a vast spectrum of investor segments.'
Adel Ali, Air Arabia Board Member and Chief Executive Officer expressed his gratitude to be associated with the Dubai Financial Market. 'DFM is a leading stock market and we are pleased with our listing. Based on both the individual success of Air Arabia and the growing demand for commercial and leisure travel in the region, we are planning to expand the company's current operating fleet, enter new markets and continue our growth strategy.'
He added: 'The carrier is financially sound and has a strong management team that has significantly grown business and profitability in a remarkably short span of time. Air Arabia aims to expand its scope of operations and invest in the infrastructure associated with the fleet expansion.'
Air Arabia's net profit for the three months ending March 31, 2007, stood at AED 43.4 million. For the same period, the company posted a turnover of AED 252 million. The airline served 580,000 passengers during the same period. The company's net profit increased 33 per cent between the fourth quarter of 2006 and the first quarter of 2007. During the same period, passenger traffic increased 17 per cent. |
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sharewadi
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Posted on Wed 18 Jul 2007 08:43 by sharewadi
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"Stock Market Analysts", except for one, seem to think yesterday's performance from Air Arabia (AIRARABIA) on the first day of listing, was impressive.
Hmmm.... Are these the same analysts who forecast Emaar Q2 earnings 20-30% higher than actual?
Well, let's see where Air Arabia shares go from here.
| Khaleej Times 18 July 2007 wrote: |
Air Arabia's market debut defies sceptics
BY ISSAC JOHN (Deputy Business Editor)
DUBAI — Backed by heavy buying and selling, Air Arabia's shares yesterday gained as much as 14 per cent on the first day trading on the Dubai Financial Market to defy sceptics who had predicted a below par debut for the low-cost carrier's stocks.
Trading of stocks, which opened at Dh1.07, went up to Dh1.14 and hit a low of Dh1.05 before closing at Dh1.10, up 10 per cent, registering a total volume of 695.8 million shares traded valued at Dh767.7 million or almost 50 per cent of DFM's total transaction value of Dh1.55 billion yesterday.
Stock market analysts said the performance of the stock was better than expected given the unfavourable market sentiments in the backdrop of yesterday's Emaar results. "Even the general perception that the Air Arabia's Dh2.57 billion IPO was overvalued at more than 40 times of its earnings did not impact the first day's performance," said an analyst. "However, the overall sentiment is that trading in the coming days will determine the real value of the stock," he said.
Sherif Abdul Khalek, Dealing Room Manager of Al Futtaim HC Securities, said yesterday's hectic trading proved that there was interest in the stock from institutions and high networth investors. "Many investors could realise modest gains on the first day despite heavy selling pressure from small investors."
P. Krishnamurthy, an investment banker, said heavy selling, representing almost 25 per cent of the IPO size, was matched by buying by institutional and long-term investors.
"Given the keen interest shown by big timers on the first day, the airline's stocks have the potential to go up in the coming days," he said.
Dhaheer Quraish, General Manager, Financial Technologies, said yesterday's volume was high because many investors sought to exit by booking up to 10 per cent margins. "The next few days will decide the course of the price."
He said Air Arabia should have gone for a small IPO that justified its real worth and then opted for a bigger sukuk.
Yesterday's listing was finalised and approved by the DFM in collaboration with the Emirates Securities and Commodities Authority. Rashid Al Shamsi, Deputy Chairman of Dubai Financial Market, attended the listing ceremony.
Ownership of Air Arabia's shares is available to UAE and GCC nationals up to 100 per cent, while foreigners are allowed to own company shares at a maximum of 49 per cent.
Air Arabia, the first and largest low cost carrier in the Middle East and North Africa, provides high frequency services on short- and medium-haul point-to-point routes within the Middle East and North Africa (MENA) region, and the Indian subcontinent, from its base at Sharjah International Airport.
The company was incorporated in March 2003.
The company's authorised capital is Dh4.66 billion while its paid-up capital is Dh4.66 billion.
The company has issued 4.66 billion shares, with each share valued at a par value Dh 1.
In a statement, Essa Kazim, Chairman of DFM, said: "Air Arabia is the 52nd company to list its shares on the DFM and the fourth within the 'Transportation' sector. We are proud to see the first listing of an airline on our bourse, which is an indication of the successes of our efforts to widen investment options across sectors for a vast spectrum of investor segments." |
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muhammedq
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Posted on Wed 18 Jul 2007 08:55 by muhammedq
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| Emirates Today 18 July 2007 wrote: |
Air Arabia makes a positive start on the Dubai bourse
Air Arabia made a promising debut on the Dubai Financial Market yesterday.
The fledgling stock closed up 11 per cent at Dh1.11 on the back of 696 million shares traded – around a quarter of the 2.57 billion sold in its earlier initial public offering.
For individual investors there was the chance to make a quick profit, while institutions also welcomed the opportunity to build a longterm stake.
The scrip opened at Dh1 and peaked at Dh1.14 before settling on the final figure.
“The first day saw a lot of trading from the grey market transferring to agreed buyers, so we don’t yet know where Air Arabia is going,” said Mohammed Abdullah, Mac Sharaf Securities senior sales analyst.
“Some people are predicting it will fall below Dh1, but I doubt it. The company’s stock would have done a lot better if Emaar’s results had been more impressive.
“If the market has a good run like it did in April, Air Arabia should hit Dh1.40. It would take at least two months to reach this figure, but I think it could then stay around that mark.” Sherif Abdul Khalek, AlFuttaim HC Securities Dealing Room Manager, said many IPO subscribers cashed in to make a short-term profit of almost 10 per cent, if they sold at around the closing figure.
“On the other hand, institutions and big investors, especially foreign ones, saw the chance to begin building a large portfolio by buying the stock at very close to its IPO price,” said Khalek.
“They are buying for the long-term and will wait for the company’s financials to strengthen,” he said. |
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indigo
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Posted on Wed 18 Jul 2007 12:07 by indigo
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| Compared to yesterday the volumes are very low today for air arabia. I agree the only way for air arabia is to take off upwards. If you remember most of the IPO shares were bought by the upper tranche investors and they tend to trade for long term. I don't see much fluctuations in price. Yesterday 1.09 looked strong and its quite stable today considering its only the 2nd day and you would image seeing 500million plus volumes. |
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thajuddeen
capitalist
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Posts: 1701
Location: UAE
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Posted on Sun 19 Aug 2007 16:02 by thajuddeen
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A Quatitative Intutional Analysis - AIR ARABIA
Everyone of you waiting for a better buying oppertunity in AIR ARABIA, I think.
At this time of the market, I will consider to wait if it can reach 1.16 - 1.17, if not, 1.13.
If the market continues to stay in red AIR ARABIA could hit by a heavy profit booking soon.
With 35% trade at 1.22 today (19/08/2007), I expect it to hit a minimum low of 1.17 tomorrow. Beware a frenzy profit booking coupled with short selling may push it to 1.10. And that's a sumptuous price.
Ok, How long to wait?: Well, until TADAWUL crash.
Judge yourself and you decide your destiny. |
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thajuddeen
capitalist
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Location: UAE
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Posted on Tue 21 Aug 2007 15:49 by thajuddeen
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Invester interest is more than my expectation.
It is not coming down as expected (wished) but is slowly coming down. Today 53 million shares (65.6%) shares traded at a strong support level 1.20 and closed at 1.19.
I think there is a short position developed at 1.20 that could lead to a fall. Tomorrow if it opens below 1.20, it could come down further. |
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thajuddeen
capitalist
Joined: 15 Apr 2007
Posts: 1701
Location: UAE
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Posted on Wed 22 Aug 2007 14:26 by thajuddeen
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Well, the panic helped those who waited.
If the DFMGI continues the slide down, 1.10 is the next target price.
Short sellers might start covering from 1.13, which is a cute price. |
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