Feesalsotend tosoarbecause, even when theyrise, captive parentsare loth to pull out, not leastbecausethealternativeislikely to beanundersubscribedandunderperforming stateschool.
One recent GEM offering, telecom solutions provider Neolink Cyber Technology, was undersubscribed, forcing co-sponsor China Everbright Securities to take up 55 million unsold shares.
But Gan Kim Khoon of SocGen-Crosby does not think both offerings will be undersubscribed, so CIMB should not be stuck with excess Bakun shares on its books.