Textured Jersey - IPO

milanka · 1 Textured Jersey - IPO Tue Apr 05, 2011 6:47 pm

milanka

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Important points :-

1. Only 10% stake to be offcered to public.
2. Private placement was "comfortably oversubscribed"
3. IPO share price would be same price as the private placement
4. IPO is to raise 1.2 billion rupees.
5. Private placement raised 50 million rupees .

http://www.lbo.lk/fullstory.php?nid=578559732

Last edited by Quibit on Tue Apr 05, 2011 7:40 pm; edited 2 times in total (Reason for editing : format condensed)

kaz4max · 2 Re: Textured Jersey - IPO Tue Apr 05, 2011 8:59 pm

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When is TJ coming bro?

milanka · 3 Re: Textured Jersey - IPO Wed Apr 06, 2011 8:40 am

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No idea Bro. Also I notice some incorrect deatils on the previos report. A much more detailed report is here.

http://www.ft.lk/2011/04/06/textured-jersey%e2%80%99s-rs-1-74-b-worth-20-pre-ipo-private-placement-oversubscribed-by-2-5-times/

ishnet · 4 Re: Textured Jersey - IPO Wed Apr 06, 2011 9:05 am

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The Private placement was at Rs. 15 per share,IPO would be Rs 15/= per share

cse.alpha · 5 Re: Textured Jersey - IPO Wed Apr 06, 2011 9:23 am

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It is good that the IPO is offered at the same price as the pre-IPO private placement at Textured Jersey.

Free Lanka Capital did private placement at 6% discount to IPO price of Rs 5 per share at Rs 4.70 per share, while Expo Lanka private placement is supposed to be at a large discount to planned IPO price. Expo private placement seems to have been at Rs 6 per share, based on recent announcement by WAPO and CINV.

But all potential investors in IPOs with recent private placements should remember to factor in increased liquidity from sales of pre-IPO investors holdings, as seems to be the case with UBC these days with reports of pre-IPO investors selling depressing the UBC share price.

innam · 6 Re: Textured Jersey - IPO Wed Apr 06, 2011 2:05 pm

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Although pricing per share is supposed to be the same for the IPO and the placement (Rs 15). If you at the valuation of the stakes something doesn't add up.
The 20% stake for the private placement is valued at Rs 1.74 billion.....yet the 10% stake given to the public is valued at Rs 1.2 billion....i may be wrong but it looks like the private placement/original shareholders are going to be given a bonus before the IPO....otherwise shouldn't a 10% stake be valued at Rs 870 million (since the 20% stake was valued at 1.74 billion)?
Seems that some smoke and mirrors are being used to stick it to the retailers...again. The private guys seem to be getting better value than the IPO investors.

cse.alpha · 7 Re: Textured Jersey - IPO Wed Apr 06, 2011 2:38 pm

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http://www.pacific-textiles.com/

There is a detailed note on the Textured Jersey transaction on the JV partner's website.

Re : innam's comments -

Post-IPO, the private placement investor stake will apparently be 17.71% and the IPO stake will be 12.21% - which, based on the values of Rs 1,740 mn and Rs 1,200 mn respectively, give the same company valuations, implying the same share price and valuations in both pre-IPO and IPO transactions.

The confusion probably arises due to the pre-IPO transaction being a sell down (no change to issued number of shares) and the IPO being a new issue of shares.

innam · 8 Re: Textured Jersey - IPO Wed Apr 06, 2011 3:11 pm

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thanks for pointing out the JV release
http://www.corpasia.net/hongkong/01382/announce/117/EN/LTN20110330690_cbNt2E6ajLAF.pdf

this is what they say-
A subdivision of the PT Sri Lanka Shares was effected on 25 March 2011 resulting in an
increase in the total number of PT Sri Lanka Shares in issue from 159,722,900 to
575,002,440. As of the date hereof, there are a total of 575,002,440 PT Sri Lanka
Shares in issue, which are owned as to 60% by PTJH and 40% by Brandix.
On 30 March 2011, PTJH and Brandix entered into a shareholders' agreement relating
to PT Sri Lanka whereby PTJH and Brandix agreed to effect the Pre-IPO Private
Placement, the PT Sri Lanka IPO and the Proposed Listing in the structure as described
in the Spin-off Announcement, except that the offer of the existing 116,000,000 PT Sri
Lanka Shares under the Pre-IPO Private Placement will be extended to institutional and
non-institutional investors, whether in and outside Sri Lanka.

still some smoke and mirrors remain and the (same pricing) numbers only make sense under the following scenario
Total shares 575 million- of this sold to private placement 116 million and sold to IPO 80 million leaving 379 million with the original shareholders (575million-116-80).
so thats
Original shareholders 379 million (66% stake) or 395 million (69% stake)
Private placement 116 million (20% stake) or 100 million (17% stake)
IPO 80 million (14% stake)- 80 million (14% stake)
if the IPO shareholders are given 14% then the pricing is fair to both private placement and IPO....let's see if the prospectus can clear up the confusion.

innam · 9 Re: Textured Jersey - IPO Wed Apr 06, 2011 3:18 pm

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ok finally got some sense thanks to cse.alpha

original shareholders 459 million (70% stake)
private placement 116 million (18% stake)
IPO 80 million (12% stake)
Total shares 655 million

ssb · 10 when?? Fri Apr 08, 2011 8:38 am

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when will this IPO come to action ,as so many talks about upcoming IPO

milanka · 11 Re: Textured Jersey - IPO Sat Apr 09, 2011 9:07 pm

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ssb · 12 Any news Mon Apr 11, 2011 9:19 am

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any news >???????

ssb · 13 Re: Textured Jersey - IPO Sat Apr 23, 2011 10:06 am

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when this come to stage ??????????????? Rolling Eyes

TuskerLK · 14 Re: Textured Jersey - IPO Sat Apr 23, 2011 10:29 am

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kaz4max wrote:When is TJ coming bro?

TJ ipo is on july-august period, I think TJ has two good points on their IPO..

1.Comes to market after credit clearance

2.IPO and placement are at the same price

Aamiable · 15 Re: Textured Jersey - IPO Sat Apr 23, 2011 10:38 am

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Apo IPO epa wela thiyenne..
Rolling Eyes

TuskerLK · 16 Re: Textured Jersey - IPO Sat Apr 23, 2011 10:47 am

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Aamiable wrote:Apo IPO epa wela thiyenne..

babytrader · 17 Re: Textured Jersey - IPO Sat Apr 23, 2011 11:53 am

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tinyman wrote:

Aamiable wrote:Apo IPO epa wela thiyenne..

...... but if the private placement n IPO price the same at least we know the top guys are not trying to screw us retailers ?

Rstock · 18 Re: Textured Jersey - IPO Tue Jun 21, 2011 9:15 pm

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Matath IPO Epawela Thiyanne. Is there any subdivision of shares after private placement? Mad

factFINDER · 19 Re: Textured Jersey - IPO Wed Jun 22, 2011 6:50 am

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tinyman wrote:

kaz4max wrote:When is TJ coming bro?

TJ ipo is on july-august period, I think TJ has two good points on their IPO..

Early July 2011

innam · 20 Re: Textured Jersey - IPO Wed Jun 22, 2011 1:10 pm

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finally the prospectus is out
http://www.texturedjersey.com/pdf/textured_jersey_lanka_limited.pdf

points to note
1) PP price and IPO price are the same at 15
2) EPS adjusted for the IPO is around 1 (Net profit of 680million divided by 655million shares)
3) Which means PE is 15- still expensive for a garment but far better then the +25 levels asked by SOFT

-Investors looking to buy this for the "long term" should note that the Hong Kong owner trades at around a PE of around 8 (based on 6 month anualised EPS-http://www.corpasia.net/hongkong/01382/financial/9/EN/LTN20101202677_afhDfDYRQ8G9_NrBcncPIHjHD_lmGUcE6KYpmP.pdf)
-Investors in HK are paying a PE of 8 for the owning company which is better diversified having garments in SL, China and Vietnam yet Sri-Lankans are expected to pay a PE of 15
-While this may be a tactical good buy because PP and IPO are at the same price, long term investors should note the difference between what the Hong Kong boys are paying compared to what they expect us to pay......

ishnet · 21 Re: Textured Jersey - IPO Wed Jun 22, 2011 1:25 pm

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7th July 2011 date of opening of the subscription list. Prospect would be delivered on 27th June.
http://www.cse.lk/cmt/upload_cse_announcements/5221308556918_.pdf

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Textured Jersey - IPO

1 Textured Jersey - IPO Tue Apr 05, 2011 6:47 pm

milanka

2 Re: Textured Jersey - IPO Tue Apr 05, 2011 8:59 pm

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3 Re: Textured Jersey - IPO Wed Apr 06, 2011 8:40 am

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4 Re: Textured Jersey - IPO Wed Apr 06, 2011 9:05 am

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5 Re: Textured Jersey - IPO Wed Apr 06, 2011 9:23 am

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6 Re: Textured Jersey - IPO Wed Apr 06, 2011 2:05 pm

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7 Re: Textured Jersey - IPO Wed Apr 06, 2011 2:38 pm

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8 Re: Textured Jersey - IPO Wed Apr 06, 2011 3:11 pm

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9 Re: Textured Jersey - IPO Wed Apr 06, 2011 3:18 pm

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10 when?? Fri Apr 08, 2011 8:38 am

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11 Re: Textured Jersey - IPO Sat Apr 09, 2011 9:07 pm

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12 Any news Mon Apr 11, 2011 9:19 am

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15 Re: Textured Jersey - IPO Sat Apr 23, 2011 10:38 am

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