A month has passed after the first trading day of PTT Oil and Retail Business Public Company Limited (OR), and the share price remains at a high level of ฿30.25/share as of the closing on March 11, 2021.
It is true that the share price has been moving mostly in a range of Bt29-31 since the first trading day, causing impatience to some investors that failed to take profit in the first few days of the listing when the share price rose as high as ฿36.00/share at a certain point.
The reason why OR’s share price could not drop below Bt28-29 might be due to the fact that whenever the share price dropped to that range, there are always buyers to quickly scoop the offers, pushing the price back to where it used to be and likewise on the other end at a range of Bt30-31.
The stabilization of OR will be terminated on March 12, 2021, which is tomorrow, raising questions of what direction OR will move after the termination of 390,000,000 over-allotted shares.
One thing is certain. OR does not seem to be needing the “Greenshoe Option” as the share price has been way above its IPO level since the first trading day.
Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities, stated that the end of stabilization of OR will have no whatsoever impact on the share price due to the fact that a majority of shares are being held by Institutional Investors just like other stocks in PTT Group. Moreover, OR has solid fundamentals with good dividend yield, which is kind of a must have stock in the portfolio of Institutional Investors.
In addition, Mr. Suktae added that the share price should maintain at this level for another 3-6 months, expecting the price to start picking up after 6-12 months. Nevertheless, OR still has strong growth potential in the future.
Even though the share price would not move higher as investors had hoped, there is still a consolation prize called “dividend payment,” which the Board of Directors of OR approved a Bt0.10 per share of dividend payment to be paid on April 28, 2021. The ex-dividend date is March 16, 2021.