This could've been the first time I'll participate in an IPO, I was psyched to buy Asia United Bank shares when I heard the news the it was oversubscribed in international market.
But upon checking its financials, it has a net income of P1.4B in 2012 and will have 328M shares, that makes it a P/E of around 22 at its IPO price of P95/share which is very high, meaning it's overpriced, and there will be a great expectation for its growth for the price to be justified. One of the factors that may help in its growth is that Asia United Bank now a unibank. Last Feb 2013, its application for universal banking license was approved, which means additional earnings can be made not just from banking alone but from being an investment house.
Anyway, personally, I won't participate in its IPO. My fundamental analysis doesn't allow me to, and I'll stick to my decision. Sure, the share price can go up with pure hype even if it's not justified, but I'll pass. There will be more opportunities to grab. PBB and EW IPO were much justified; among the three, AUB has the highest P/E at IPO, EW has the lowest.
Though AUB is at a premium comparing its P/E, the better metric for finance-related businesses, such as banks is the P/BV.. and it seems AUB is the least expensive.. so for me it is a buy.
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