I have been looking at the stabilizing action as made on Airasia X's stock price. Stabilizing action or green shoe option has been made on the shares for almost everyday since its listing date. Stocks have been purchased at RM1.25 for it not to drop below the IPO listed price.
Airasia X's stock is not that bad, but it is not just worth the price it is listed for. I do not know how much it is worth, BUT I AM WONDERING WHY NOT LET THE MARKET DECIDE.
A stabilizing action can actually causes fear among the shareholders as the share price is deemed as not true worth of what its underlying value is - hence probably more selling.
And in the future, for any IPO per se, let's not overprice the initial offer. The recent large IPOs, we have seen the shareholders have sort of become greedy and think that their share price can do wonders.
IPOs (which are sort of new kids on the block) should not do wonders as they have yet to prove their performance consistencies in the market. If the company is beautiful, overtime its stocks price and financial performance would show. But to expect immediate results from selling expensive is not the way.