Lifetime Membership Volatility remains the name of the game for Wilmar share price. In my last article on this counter, my forecast was that Wilmar share price may hit a high of $5.70 in February 2022. I have also suggested that the violent swings of Wilmar share price mean that this counter is not for the faint-hearted. Indeed, the see-saw movements of Wilmar share price had led to an SG Wealth Builder Lifetime member seeking my insights.
The performances of Wilmar share price remain one of the biggest enigmas of SGX mainboard. There are so many catalysts providing wind to the sail of Wilmar share price but the counter always flatter to deceive.
Take for example, the crude palm oil (CPO) price has hit the record high of RM5,497 per tonne on 24 January 2022. Being one of the largest oil palm plantation owners in the world, Wilmar should have benefitted from the raging CPO prices. Yet Wilmar share price did not rocket and has been blowing hot and cold lately. And then there is the upcoming India IPO of Adani Wilmar.
Although the Adani Wilmar India IPO is expected to unlock value for investors and provides positive sentiments for Wilmar share price, it is of significantly smaller scale as compared to the Yihai Kerry Arawana Holdings Co., Ltd, (“YKA”)’s IPO in October 2020. The YKA’s IPO resulted in a market capitalisation of RMB303.61 billion (approximately US$45.24 billion) as at 15 October 2020. On the other hand, Adani Wilmar is a 50-50 joint venture between Adani and Wilmar and the IPO is valued at about $646 million only.
Due to the massive size of the IPO, YKA has a huge bearing on Wilmar share price from October 2020 to early 2021. Despite being a subsidiary of Wilmar, YKA’s market capitalization had already exceeded Wilmar’s market capitalization when the former got listed in Shenzhen stock exchange. The successful YKA’s listing saw Wilmar share price blazing from $3.10 on 20 March 2020 to $5.57 on 19 February 2021. Wilmar share price soared to $5.57 back then because of the $0.065 special dividend.
This time round, a special dividend is not in sight because the Adani Wilmar IPO has not taken place yet. Even if there is a special dividend, I doubt that it will amount to $0.065. In my humble opinion, the event that could move the needle for Wilmar share price should be the coming release of FY2021 financial result.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. As of now, I am not vested in this counter. In view of the volatility of Wilmar share price, investors must exercise caution in trading this counter.
Wilmar share price hinges on India
All roads lead to India. Although the India IPO of Adani Wilmar is unlikely to impact Wilmar share price significantly in the short term, the India market is gaining significant importance to Wilmar’s core business in recent years. According to data extracted from [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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