Shares at Maldives Tourism Development Corporation have appreciated to three folds in less than two years from inception. The public hold majority shares in the company and its shareholders can now encash these shares for a huge return. Besides this, the company’s first declared dividends of Mrf 90 per share for the period 2006 to 2008 means the initial investment is being paid back in a very short period. How wonderful isn’t it?
This Initial Public Offering attracted mixed reactions in 2006. Those that bought maximum possible share allotment for themselves and all their relatives can now celebrate the achievement. Others who were more suspicious and conservative in their approach have definitely lost a great opportunity and will require a lot of effort to make up for the mistake. Quite coincidentally I met some friends who are heartbroken to have accepted early advises against this stock. Why worry though? One of the greatest things about the capital market is that the doors are never closed. The secondary market (post initial public offering) offer vary many trading opportunities. Availing the opportunities and assessing the risks rest upon the individual investor.