FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post
STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post




Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute


Submit Post

CHRONICLE ANALYTICS
All Share Index (ASI), S&P, Milanka Price Index (MPI), Moving Averages and all other analytical graphs and charts

Contribute

Twitter Feeds

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » EXPOLANKA HOLDINGS PLC (EXPO.N0000)

EXPOLANKA HOLDINGS PLC (EXPO.N0000)

Go to page : Previous  1 ... 5, 6, 7 ... 23 ... 40  Next

Go down  Message [Page 6 of 40]

126EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:45 pm

innam


Manager - Equity Analytics
Manager - Equity Analytics
@babytrader wrote:
@innam wrote:let me repeat the key points of my reply again just to make it clear one FINAL time.....as i've said before you can lead a horse to water but....

-keep in mind i'm not talking about the return you can get from the IPO,
-what i and a few other posters are pointing out is that a select group of people got shares at 6 less than six months ago
-while retailers are now expected to pay 14
-remember for someone who got shares at 6 even selling at 9 rupees will deliver a 50% return.....


innam agree with you. Just one point of clarification. Just wondering if the cost of investors in the private placement should be more than Rs 6 ?... if you look at table 12, example JKH got 4.67% pre-IPO share.. but with the IPO its share becomes 4.26%.

I mean there is a dilution of shares right ? ... so the cost would be 6.60 ? which is still a very good discount

just keep things simple....pre-IPO JKH owns 83.3 million shares (@6), post-IPO they still own 83.3 million shares (@6) don't get hung up over the percentage ownership.....
let me repeat my point slightly differently, will JKH sit and wait for rosy magical EPS increases from debt/working capital reductions or will they pull the trigger and sell the shares they got for 6 for an easy 50%-100% return?

127EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 11:01 pm

Antonym


Vice President - Equity Analytics
Vice President - Equity Analytics
@innam: Some good insights there! I appreciate your diligence in going through the prospectus and making things clear to us... And the patient repetition of the key message!

If I was JKH, I wouldn't 'sit and wait'... Forewarned is forearmed, I hope! Smile

128EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 12:24 am

FKhamissa


Stock Trader

Point to ponder.. why will JKH, Ceylon investment, Lanka Strategic investment, Softlogic, Falcon trading, Timex garments (companies that received the largest junk of the private placement according to the prospectus) all of who are as big as EXPO by them selves with some of the best financial analysts dump a share at less than its true value when they know that it is worth well more based on current industry valuations.

its like owning car worth 4 million in the market today.. but selling it for 3 million just cuz you bought it for 2 million.. these big investment fund didnt become big by selling their investments off cheap.




129EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 12:42 am

MHS


Stock Trader
@FKhamissa wrote:
Point to ponder.. why will JKH, Ceylon investment, Lanka Strategic investment, Softlogic, Falcon trading, Timex garments (companies that received the largest junk of the private placement according to the prospectus) all of who are as big as EXPO by them selves with some of the best financial analysts dump a share at less than its true value when they know that it is worth well more based on current industry valuations.

its like owning car worth 4 million in the market today.. but selling it for 3 million just cuz you bought it for 2 million.. these big investment fund didnt become big by selling their investments off cheap.





Good Point!!That makes sense.

I heard from Aquity stock brokers that there were some private sales of Expo (grey market) at 23 rupees by people who had bought at the private placement. according to my broker people were desperate to buy at around 20 rupees but couldn't find any one to sell. so if any of the big investors wanted to dump and make a quick profit they had the opportunity.


130EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 6:21 am

econ


Global Moderator
I think SEC should introduce rules to stop private placement just before IPO at lower price. if any company want to give shares to their friends or other big players they should give it same price as IPO price . otherwise this is unethical. this is just fooling retailers.
we should avoid these type of IPOs.

131EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 7:48 am

pdgsuranga

pdgsuranga
Equity Analytic
Equity Analytic
company have to think about private placement before the IPO. Why they playing with small investments. We should avoid them.

132EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 8:36 am

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@econ wrote:I think SEC should introduce rules to stop private placement just before IPO at lower price. if any company want to give shares to their friends or other big players they should give it same price as IPO price . otherwise this is unethical. this is just fooling retailers.
we should avoid these type of IPOs.

Well the problem is; this is not pre-ipo stage.. sometime around 6 months back.. SEC cant do anything abt this, as if a company wants to raise capital intervene of SEC would result in a company getting a loss incurred at that stage without cash requirements for intended projects and so forth .. And its not ethical stopping a company from further investments though..

But why EXPO had to sell the shares at a mere Rs.6/- to another party and they value share @14 now at the IPO stage is the golden question we have to find answers to...

As Innam clearly pointed out,
Its not abt how much return we get.. can be 10-50% or even less
Its abt why we pay 14 when others have got it at 6? Have the retailers been taken as fools???
Again if some party starts dumping at even 15, the share may end up in going negative track..

133EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 8:44 am

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@FKhamissa wrote:
Point to ponder.. why will JKH, Ceylon investment, Lanka Strategic investment, Softlogic, Falcon trading, Timex garments (companies that received the largest junk of the private placement according to the prospectus) all of who are as big as EXPO by them selves with some of the best financial analysts dump a share at less than its true value when they know that it is worth well more based on current industry valuations.

its like owning car worth 4 million in the market today.. but selling it for 3 million just cuz you bought it for 2 million.. these big investment fund didnt become big by selling their investments off cheap.


Agreed, EXPO is running in good business model. Now the issue is Private placement / sell down taken place @ Rs.6 and IPO comes @ Rs.14.. As u said, these strategic investors had done good analysis, whether to invest @ Rs.6 not @ Rs.14

As innam pointed out, If these investors sell their shares even @ Rs.9-Rs.10 with huge return....??? Ok to be positive, let us assume these strategic investors will not sell until to see rosy picture of the financial....

How will be the behavior of shareholders representing others with 130Mn shares???????... These might have allotted to friends,family and relatives or other institutional investors... We can not rely on them...

Happy trading...



Last edited by seyon on Sun Apr 24, 2011 8:50 am; edited 2 times in total

134EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 8:45 am

investor1984

investor1984
Manager - Equity Analytics
Manager - Equity Analytics
Yes.. big companies take us for a ride.. its bad.. but we cant do anything about it.. But do we really have to talk much about WAPO dumping their sweet heart deal on first day??? I don't think so, if EXPO worth @ 16 , i don't care.. I will apply for IPO.. I don't bother about the price others got, its in a way good that if WAPO gonna dump, then price will go below 16 and i can collect more.. Why are we all so concerned only about the first day trading price??? Isn't EXPO a share worth holding for long time???????

135EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 9:10 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@investor1984 wrote:Yes.. big companies take us for a ride.. its bad.. but we cant do anything about it.. But do we really have to talk much about WAPO dumping their sweet heart deal on first day??? I don't think so, if EXPO worth @ 16 , i don't care.. I will apply for IPO.. I don't bother about the price others got, its in a way good that if WAPO gonna dump, then price will go below 16 and i can collect more.. Why are we all so concerned only about the first day trading price??? Isn't EXPO a share worth holding for long time???????

May be we can collect more and be the hard-core investors of EXPO in big time Wink I was thinking, why not being long term investors of this company.. its also said to be a blu chip, isn't it? Twisted Evil

But we should not weep over the stupidity.. if any company dump shares and the price goes down we'll have to catch it from the lowest levels like ppl did in PCH.. Twisted Evil Twisted Evil

136EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Expo Lanka - Interview with CEO Mon Apr 25, 2011 8:05 am

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
Important note from the interview :-

Instead of issuing new shares , the original shareholders, partly solddown during last year Rs. 1.9 Bn PP, which based on Fundamentals at that time was priced at Rs. 6 per share. The PP saw entry of some of the highly respected respected companies and Investors.

Funds raised thru PP didn't go in to pockets of shareholders but reinvested in the company.

Full Interview on ft.lk today.

http://www.ft.lk/2011/04/25/expolanka-excelling-by-being-extraordinary/



http://forum.srilankaequity.com/u188

137EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 8:22 am

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Now only they've shed some light on it.. but they say the intrinsic value at that time was Rs.6/- but how come it got more than double in quite a small time frame?
Anyways, still the argument prevails.. We still cannot say whether the cars group would not go for a capital gain without wait Wink

138EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 8:29 am

Soundchips


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
http://vanguard1.vanguardlk.com/lbo/fullstory.php?nid=1640706196

Are they long term investments... JKH might keep them as long term investments.... foreign funds were also interested ...

139EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 8:38 am

cse.alpha


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Note 4.5 on page 60 of the Expo Prospectus says that the Rs.1.9 billion private placement was done in December 2010. The shares were valued at Rs.6 then.

Although report says funds from pvt placement was reinvested in group by retiring debt, it is difficult to reconcile this statement with Expo balance sheet as at 31/12/10.

140EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 10:34 am

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@milanka wrote:Important note from the interview :-

Instead of issuing new shares , the original shareholders, partly solddown during last year Rs. 1.9 Bn PP, which based on Fundamentals at that time was priced at Rs. 6 per share. The PP saw entry of some of the highly respected respected companies and Investors.

Funds raised thru PP didn't go in to pockets of shareholders but reinvested in the company.

Full Interview on ft.lk today.

http://www.ft.lk/2011/04/25/expolanka-excelling-by-being-extraordinary/




"The number of fully paid ordinary shares of Expolanka Holdings Limited at the time of lodgment of the application on 25th March 2011 is 1,782,915,000 shares. There were no shares issued for two (02) years preceding the date of the prospectus." (p.44 of the Prospectus).

However, in the same page it is indicated transfer of 316,667,500 shares from existing shareholders (at the time). By mutliplying this by Rs 6, it become 1.9 billion.

Implications.

1. 1.9 billion issue in the above article is seems to be a sell out of existing shares . This further confirms as the prospectus says they had no new share issues for 2 years

2. So it is not a private placement according to SEC directives.

3. So anyone purchase at 6 can sell it immediately without waiting one year.

By considering all above the statement "Funds raised thru PP didn't go in to pockets of shareholders but reinvested in the company" seems to be a lie. Because once existing owners sell shares that money goes to respective owners pocket. Not like a sole-proprietorship in a company if owners bring equity capital to a company it should be through a new share issue. Since they have not issue any new share recently, this reinvestment claim deemed unacceptable.

Further, can anyone justify what economic or company specific changes made Expo worth 14/6=2.33 times just within 6 months?

141EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 10:52 am

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@cse.alpha wrote:Note 4.5 on page 60 of the Expo Prospectus says that the Rs.1.9 billion private placement was done in December 2010. The shares were valued at Rs.6 then.

Although report says funds from pvt placement was reinvested in group by retiring debt, it is difficult to reconcile this statement with Expo balance sheet as at 31/12/10.

In the note they say "The private placement was a transfer of shares from existing shareholders of the Company (the promoters) to new investors. The Company’s obligations in this agreement are not
material to its ordinary business activities."

1. This confirms it is not a new issue.
2. What is the agreement?

142EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Expo Lanka Holding Limited - IPO Mon Apr 25, 2011 12:18 pm

KPMG

KPMG
Manager - Equity Analytics
Manager - Equity Analytics
Expo Lanka Holding Limited, another IPO.As usual our retails investors are very busy to find cash to apply for said ipo.Some time they sell their good stocks to find cash. Who cares prospectus? Why? Every IPO share price is going up in first day. So no need to read prospectus and best thing is applying all IPOs. Do you think same? We think that most of our retail investors think so. Companies, those come to IPOs, they know how our investors think and they value their IPO price with smart premium and rest will be handed over to our investors. They are doing job well. Finally IPO is oversubscribed by many times.
If above comments is not relevant to you, please forget it.
Here we would like to highlight few points regarding Expo Lanka Holding Limited.

· Stated capital of the company Rs.1,782,915,000/=.its equal to issued no of shares (before IPO).This means promoters cost of shares is Rs.1.if directors sell 127,351,071 shares @14,their cost for the company is zero. They can do this without changing major shareholding.
· 15%, out of IPO shares will be allocated to employees, its means 25,800,000 no of shares. In addition to this another 2,678,500 shares will be allocated on May 2011 under ESOP. some time they may dump their holding in first day,if they feel,price is getting down and they know their company real value.
· 316,667,500 shares were transferred @ rs.6.we can’t say exactly their decision on first trading day. but we know if they sell @14,they will get a wonderful capital gain (14-6).
· ROE of the company is 15%, EPS .711 for nine months ended including major one off income, Book value per shares 2.41 after IPO increased to 3.42.pls make your valuation.
· Company has declared dividend for the nine months ended 31st December 2011,cents 0.121.this reduced further cost of a share of directors
· During the year Rs.100,626,192 has been granted to directors as advance

Note. If you think that above comments are wrong, please discuss with us. And also we would like to say that above are our views. Please make your own analysis or contact your advisor for relevant decision making.

http://sinhalainvestor.blogspot.com/2011/04/expo-lanka-holding-limited-ipo.html?spref=fb

143EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Is Expo Lanka Worth @ 14 When PP was @ 6 Mon Apr 25, 2011 5:15 pm

MoneyMaker

MoneyMaker
Senior Equity Analytic
Senior Equity Analytic
Is Expo Lanka Worth @ 14 When PP was @ 6.

There are many schools of thought.

Personally I plan on waiting for the share to come into the market and eventually see the behavior and buy if it performs positively.

Whats yours?

144EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 5:48 pm

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@MoneyMaker wrote:Is Expo Lanka Worth @ 14 When PP was @ 6.

There are many schools of thought.

Personally I plan on waiting for the share to come into the market and eventually see the behavior and buy if it performs positively.

Whats yours?



Just view the lengthy discussion http://forum.srilankaequity.com/t2882-expolanka-facts-from-prospectus-valuation

145EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Mon Apr 25, 2011 10:31 pm

MHS


Stock Trader
@innam wrote:the IPO price you might say is not vastly over priced for a conglomerate but the biggest problem is that the existing shareholders had sold nearly 300 million of shares at a price of Rs 6/=, so friends and the big players have got 300 million shares at 6/= while retailers and smaller big boys are going to get 172 million at 14/=......the question is will those 300 million shares get dumped onto the market on the first day or will the SEC one year lock rule apply to them?

Innam.. i am trying to get in touch with you but i dont seem to be able to send you a message as i am too new.. appreciate if you can send me a message regarding Expo IPO.. Thanks..

146EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Are we such fools as they think we are? Mon Apr 25, 2011 10:52 pm

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
http://forum.srilankaequity.com/t2882-expolanka-facts-from-prospectus-valuation

If u are thinking to buy, just check out the explanation by Innam.

And I have a wild guess why he chose porky for his profile.

147EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty price change Tue Apr 26, 2011 10:16 am

hhperera


Equity Analytic
Equity Analytic
Basic finance tells you:

sales
- EBIT
-----------
NOPLAT (net operating profit less adjusted taxes)
- Capex
- Dep
- change in Working cap expenses
-------------------
Free cash flow


then

PV of all free cash flows
- Non operating assets
--------------------------
Enterprise Value
- debt (and equivalents)
---------------------
= EQUITY VALUE


i.e, it follows that once debt is retired/paid off... the equity value of a company increases
(hence, the price per share).

Hence, if the private placement was utilized in retiring debt it follows that the price per share increases. (Prospectus, page 43 shows the dramatic drop in debt/equity ratio from .56X to 0.12X (from fy 10 to fy 11- 9 month interim).

Additionally it is well accepted, across world mkts that pvt placements do take place at a discounted value to the "sophisticated" investors, for these reasons.
E.g various tata group companies in india, twitter, recently facebook etc.. etc...
the practice is accepted and part and parcel of the financial world.





148EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Tue Apr 26, 2011 3:03 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@hhperera wrote:

i.e, it follows that once debt is retired/paid off... the equity value of a company increases
(hence, the price per share).

Hence, if the private placement was utilized in retiring debt it follows that the price per share increases.

Can you explain when promoters (original owners) sell part of their existing stake, how that money come into the company to release debt, without having a new share issue and/or new debt? Page 44 of the prospectus say no new issue for 2 years.

149EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Tue Apr 26, 2011 3:25 pm

pdgsuranga

pdgsuranga
Equity Analytic
Equity Analytic
Expolanka has been in business since 1978. Current workforce is estimated to 2965 people. Their main businesses includes Transportation, International Trading, Manufacturing and Strategic investment. Expolanka is a pioneer exporter of fresh produce.

What they going to do with IPO money?

Total value of the Expolanka IPO is amounted to 2408 million rupees. Rs 908 million will be used to settle long term debt while 1000 million rupees will use to increase working capital of specific Group entities. They hope to use another 500 million rupees to expand the existing warehouse capacity to supplement the Group’s expansion into the local Transport and Logistics Sector . With the above usage of IPO funds the profitability of the company will increase in long run.


Is it Worth buying Expolanka Shares from IPO?

Yes it is. Expolanka is well diversified and matured company. Group made a profit of Rs 1,267,856,108.00 for the 9 months ended 31st December 2010. Earning Per Share for the nine months amounted to Rs 0.711 and if annualized it will be Rs 0.95 per share based on existing issued number of shares. At issue price Rs 14.00 PER will be 14.74 times compared to Market PE of 26.55 times. So Expo Lanka IPO can be considered fairly valued.

Will Expo Lanka shares subject to heavy selling pressure on first day of trading?

There are 1,782,915,000 issued shares before IPO out of that 130,500,000 shares (6.68 percent) held by public so they may sell it. But I don't think it will affect much on share price. According to the prospectus Expolanka didn't issue shares after year 2005.

Please read the the Expolanka IPO Prospectus carefully before you make a decision to subscribe for the IPO.

To download Expolanka prospectus please copy and paste following web address to your web browser.

http://www.stock-market-today.net/

150EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Tue Apr 26, 2011 3:28 pm

cse.alpha


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@hhperera wrote:

Additionally it is well accepted, across world mkts that pvt placements do take place at a discounted value to the "sophisticated" investors, for these reasons.
E.g various tata group companies in india, twitter, recently facebook etc.. etc...
the practice is accepted and part and parcel of the financial world.


---

Private placements usually occur at discounts to IPO price when there is a long time involved between the private deal and going public.

In the case of Expo, the private deal happened in December 2010 at Rs6, and the company is going public in May 2011 at Rs14 - this is too short a time frame to justify such a large discount.

151EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Tue Apr 26, 2011 5:13 pm

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@cse.alpha wrote:
@hhperera wrote:

Additionally it is well accepted, across world mkts that pvt placements do take place at a discounted value to the "sophisticated" investors, for these reasons.
E.g various tata group companies in india, twitter, recently facebook etc.. etc...
the practice is accepted and part and parcel of the financial world.


---

Private placements usually occur at discounts to IPO price when there is a long time involved between the private deal and going public.

In the case of Expo, the private deal happened in December 2010 at Rs6, and the company is going public in May 2011 at Rs14 - this is too short a time frame to justify such a large discount.


well said alpha...

theory should not be just accepted. there are many more..

ethic & good management are seriously lacks in CSE & SEC..

Because of that only the regulators approve these kind of arbitrary prices and impose and remove ad-hoc rules and regulations...

152EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Tue Apr 26, 2011 8:37 pm

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics
The attempt by some pathetic new members to promote Expo IPO in this thread is rather disgusting. From the way they are begging people to ignore the fact that friends and friendly companies have been given shares at 6.00 while you and I are expected to pay 14 tells me that they are people with vested interests.

You decide whether you want to listen to these unkown new comers or to members like cse.alpha and innam who have proven their class.

153EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty JKSB report on ExpoLanka Wed Apr 27, 2011 9:09 am

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
http://www.ft.lk/2011/04/27/john-keells-stock-brokers-recommends-expolanka-as-%e2%80%98buy%e2%80%99/

Please make your own investment decision.

http://forum.srilankaequity.com/u188

154EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Wed Apr 27, 2011 9:32 am

cse.alpha


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
With JKSB being part of JKH Group who are co-managing the Expo issue & JKH also having 83 million shares at Rs6/= in Expo, we can't expect anything else than a 'buy' recommendation from them

JKSB are forecasting a FY12E eps of Rs1.03 for Expo, which puts the FY12E PER at 13.6x at IPO price of Rs14/=

Expo FY11E net profit is estimated at Rs1.5 billion - reducing capital gains of Rs313 million on sale of Expo Aviation, gives 'normalised' FY11E net profit of Rs1.2 billion, and normalised FY11E eps of Rs0.66

This suggests that pvt deal at Rs6/= in december 2010 was issued at FY11E PER of 9.1x - a 50% premium is now being asked for in valuations terms at IPO price using FY12E earnings.

155EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 6 Empty Expo lanka Wed Apr 27, 2011 9:52 am

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Good analysis CSE alpha. This is not the first time JKH have exploited the retailers. Remember KHL rights issue? They dumped millions of shares bought at 12 to retailers at 20+. Now see where KHL price is?

Guys, remember promoters of IPOs could be connected to the company. Because retailers don't own the share just yet.

Sponsored content


Back to top  Message [Page 6 of 40]

Go to page : Previous  1 ... 5, 6, 7 ... 23 ... 40  Next

Permissions in this forum:
You cannot reply to topics in this forum