The following is a guest post from Ching Lee, Founder of iMoney.my. iMoney helps Malaysians save money by providing a free, user-friendly online service so that Malaysians can compare a wide range of products in one place, and find the product most suited to their needs. Simply put, iMoney lets you compare all your options before you spend your money.
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Speculators across the world are wondering if the hype of Facebook's initial public offering (IPO) will be artificially driving up its price. In fact, according to Reuters, Facebook’s IPO is already oversubscribed, despite some concerns about slowing growth, high valuation and signs the company is having trouble increasing revenue from mobile advertising.
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Speculators across the world are wondering if the hype of Facebook's initial public offering (IPO) will be artificially driving up its price. In fact, according to Reuters, Facebook’s IPO is already oversubscribed, despite some concerns about slowing growth, high valuation and signs the company is having trouble increasing revenue from mobile advertising.
Below are a
few recent quotes / comments by market experts on the topic:
“Most retail investors will be shut out
of the offering and won't get the IPO price, meaning they likely will have to
pay more in the days that follow if they want an early piece of the action.” – The Wall
Street Journal
“The valuation can be justified only if
investors assume that Facebook can continue its rapid growth.” - Gerard Hoberg, Associate
Professor of Finance at the Robert H. Smith School of Business, University of
Maryland.
“When the smoke clears, it is likely
for Facebook to carry a $100 billion market capitalization over top of $1
billion in 2011 net income.” – SeekingAlpha.com
Rumour has
it the Facebook IPO will create more than 900 millionaires, mostly among
Facebook’s early employees. It is no wonder that many casual investors have
strong desires to buy a piece of the stock, just to own a part of the company
they use so often.
Do
Malaysians want to buy Facebook shares? After all, Malaysia is one of the most sociable countries on Facebook.
For those
who are interested, the iMoney.my research team has put together a table that
compares some of Malaysia’s top brokers. With more than a dozen brokers in
Malaysia, it is often a colossus task finding and identifying the right broker.
iMoney’s research is primarily focused on costs (how to avoid being charged
unnecessary fees) and ease of use (how can Malaysians effortlessly own Facebook
shares), and below are some of their top recommendations:
Before you can purchase any Facebook shares (or any overseas shares for that matter), there are generally a few things you need to do:
Broker
|
Fees And Charges
|
Ease Of Use
|
Maybank
|
Brokerage: 0.4% (minimum of USD25)
Total fee assuming a
RM10,000 investment: RM75
|
Pros:
- Online Application (For Existing Maybank Customers)
- Online Trading Access
- Phone Assistance
Cons: n.a.
|
CIMB iTrade
|
Brokerage: 0.4% (minimum of USD25)
Contract Stamp: 0.1%
Bank Charges: RM20 (buy only)
Total fee assuming a
RM10,000 investment: RM105
|
Pros:
- Downloadable Application Forms
- Online Trading Access
- Phone Assistance
Cons: n.a.
|
OSK188
|
- Brokerage: 0.1% (min of USD25) based on USD value + 0.3% (min
of RM28) based on RM value
- Stamp Duty: 0.1%
Total fee assuming a
RM10,000 investment: RM115
|
Pros:
- Online Trading Access
- Phone Assistance
Cons:
|
Alliance
|
- Brokerage: 0.15% (min of USD20) based on USD value + 0.6% based
on RM value
- Contract Stamp: 0.1%
Total fee assuming a
RM10,000 investment: RM130
|
Pros:
- Online Trading Access
- Phone Assistance
Cons:
|
**We assumed a USD/MYR exchange rate of USD1 = RM3
So how do
you actually get a piece of Facebook share?
A STEP-BY-STEP GUIDE TO BUY FACEBOOK SHARES
Before you can purchase any Facebook shares (or any overseas shares for that matter), there are generally a few things you need to do:
1) Open A Foreign Shares Security Trading Account With A Broker.
To do this,
you will need to bring along
·
a
copy of your NRIC,
·
a
recent bank statement, and
·
an
account opening fee (usually around RM10 to RM30)
to the
nearest branch of your preferred broker. Some brokers (e.g. CIMB) have
downloadable forms online that you can complete prior to visiting the branch in
order to reduce your wait time. Maybank allows you to complete the application online
if you’re an existing customer.
2) Register For An Online Trading Account
This is an
additional step if you would like to buy your Facebook shares online (i.e. not
through phone transactions). Most brokers would offer to register an online
trading account for you while you set up your security account at the branch,
however, you must explicitly request for this.
3) Log-On and Find the NASDAQ Stock Market
Like most
technology-related companies, Facebook will be listed on the US NASDAQ share
market. To find Facebook shares, you will need to look under the stock code
“FB”.
4) Purchase Facebook Shares
Based on a
number of market commentaries, Facebook is expected to see its shares sold
between USD28 to USD35 (or around RM84 to RM105) upon listing. Depending on
your broker, you may be able to purchase shares in lot sizes of 100 or less.
It would
generally take 3 working days from the time you transact to the time you
actually own the shares (commonly known as a settlement period of T+3).
NEED HELP?
Need to speak
to a remisier? Email iMoney your name and preferred mode of contact at
hello@imoney.my, and we'll get back to you with a list of remisiers you can
call to get direct advice.
Need more
comparisons? Want to know our personal recommendations? Sign up for the
iMoney.my "Money Saving" Newsletter at our website: www.iMoney.my
Want to know
what your friends think? Share this article!
ABOUT
iMoney.my is
a new and exciting price comparison website in Malaysia. We help Malaysians
compare all their options before spending their money.
Disclaimer:
We're not trying to hype up any stock and we're not involved with Facebook
(although we wish we were), and investing money always involves the possibility
of losing it, so please consult your financial advisor before investing!
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