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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Union Bank IPO

Union Bank IPO

Go down  Message [Page 1 of 1]

1Union Bank IPO  Empty Union Bank IPO Wed Feb 09, 2011 11:34 am

dhamm


Manager - Equity Analytics
Manager - Equity Analytics
Guys, what do you all think about the union bank IPO? Has anyone done a valuation for it? pls share your views..
Thanks.

2Union Bank IPO  Empty Prospectus not out yet Wed Feb 09, 2011 12:31 pm

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
Prospectus not out yet !! My broker said may be this eveing or Tomorrow the books would be available... Also we may be able to download from CSE site tomoro..!

http://forum.srilankaequity.com/u188

3Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 12:33 pm

dhamm


Manager - Equity Analytics
Manager - Equity Analytics
milanka, its available on their site. pls follow following link.

http://www.unionb.com/UnionBankProspectus.pdf

4Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 2:07 pm

econ

econ
Global Moderator
NAVPS - 12
EPS annualized = 0.63

issue price - 25
total shares after issue - 348 million
PB ratio - 25/12 , around 2
PER ratio - 25/0.63 - around 39
ROE - 5.5%
NPL ratio - 7.22%

considering all those for me UNION Bank IPO is not that undervalued.

5Union Bank IPO  Empty Union Bank IPO Wed Feb 09, 2011 5:18 pm

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
What are your ideas about this ? Smile

6Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 6:44 pm

watch


Equity Analytic
Equity Analytic

I think specially IPO shares cannot be valued considering normal ratios.econ is correct. it is not undervalued.
also In IPO situation SFIN is not undervalued. but share up up.......
on attraction of finance sector union bank share can be doubled. better to aware about over subscription rate.

7Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 6:59 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@econ wrote:NAVPS - 12
EPS annualized = 0.63

issue price - 25
total shares after issue - 348 million
PB ratio - 25/12 , around 2
PER ratio - 25/0.63 - around 39
ROE - 5.5%
NPL ratio - 7.22%

considering all those for me UNION Bank IPO is not that undervalued.

econ,
NAVPS @ 12, PBV @ 2.02 (25/12) seem good know? Why u said its overvalued?
We cant go by the normal EPS valuation for a bank know?
Also ROE is lower, so I think we can give it a fair value..

8Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 7:18 pm

SilverHawk


Equity Analytic
Equity Analytic
@smallville wrote:
@econ wrote:NAVPS - 12
EPS annualized = 0.63

issue price - 25
total shares after issue - 348 million
PB ratio - 25/12 , around 2
PER ratio - 25/0.63 - around 39
ROE - 5.5%
NPL ratio - 7.22%

considering all those for me UNION Bank IPO is not that undervalued.

econ,
NAVPS @ 12, PBV @ 2.02 (25/12) seem good know? Why u said its overvalued?
We cant go by the normal EPS valuation for a bank know?
Also ROE is lower, so I think we can give it a fair value..


Book value is one measure, but EPS also important, bcos ultimately all matters whether they are performing or not for value we are paying for shares.

9Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 7:33 pm

econ

econ
Global Moderator
@smallville wrote:
@econ wrote:NAVPS - 12
EPS annualized = 0.63

issue price - 25
total shares after issue - 348 million
PB ratio - 25/12 , around 2
PER ratio - 25/0.63 - around 39
ROE - 5.5%
NPL ratio - 7.22%

considering all those for me UNION Bank IPO is not that undervalued.

econ,
NAVPS @ 12, PBV @ 2.02 (25/12) seem good know? Why u said its overvalued?
We cant go by the normal EPS valuation for a bank know?
Also ROE is lower, so I think we can give it a fair value..

yes we do not use just PER for banking valuation. that's why I gave several ratios..
PBV is good but NPL ratio is 7.22% . which is I think quite high. I did not check other banks though. ROE is 5.5% and EPS is quite low compare with other growing banks like NTB,NDB etc.

10Union Bank IPO  Empty Private Placement Infor. Wed Feb 09, 2011 8:43 pm

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
The private placement of Union Bank has triggered significant response with the issue closing yesterday.

Union Bank offered 12.5 million shares via the unique private placement incorporating a tender basis and a book building process. The minimum bid was Rs. 26 per share.

Sources said that the placement had received bids as high as Rs. 34 per share whilst the biggest application was at Rs. 30 per share. Previously 7.5 million shares were placed with a foreign institutional shareholder at Rs. 28 each, bringing the total offered via private placements to 20 million shares.

Source : ft.lk 28th Dec 2010.

http://forum.srilankaequity.com/u188

11Union Bank IPO  Empty Re: Union Bank IPO Wed Feb 09, 2011 8:58 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Thanks SilverHawk & Econ.. Given the fact that this is a financial institute.. I think we can expect a run for at least 35-40... Food for thought ;-)

12Union Bank IPO  Empty Re: Union Bank IPO Thu Feb 10, 2011 12:41 am

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics
@SilverHawk wrote:
@smallville wrote:
@econ wrote:NAVPS - 12
EPS annualized = 0.63

issue price - 25
total shares after issue - 348 million
PB ratio - 25/12 , around 2
PER ratio - 25/0.63 - around 39
ROE - 5.5%
NPL ratio - 7.22%

considering all those for me UNION Bank IPO is not that undervalued.

econ,
NAVPS @ 12, PBV @ 2.02 (25/12) seem good know? Why u said its overvalued?
We cant go by the normal EPS valuation for a bank know?
Also ROE is lower, so I think we can give it a fair value..


Book value is one measure, but EPS also important, bcos ultimately all matters whether they are performing or not for value we are paying for shares.

banks are about how much capital you have. If you have enough capital at your disposal future earning will come naturally. Why are all these institutional buyers offering 30 for the private placement if this is not fairly valued?

13Union Bank IPO  Empty Re: Union Bank IPO Thu Feb 10, 2011 4:01 am

econ

econ
Global Moderator
@mono wrote:
@SilverHawk wrote:
@smallville wrote:
@econ wrote:NAVPS - 12
EPS annualized = 0.63

issue price - 25
total shares after issue - 348 million
PB ratio - 25/12 , around 2
PER ratio - 25/0.63 - around 39
ROE - 5.5%
NPL ratio - 7.22%

considering all those for me UNION Bank IPO is not that undervalued.

econ,
NAVPS @ 12, PBV @ 2.02 (25/12) seem good know? Why u said its overvalued?
We cant go by the normal EPS valuation for a bank know?
Also ROE is lower, so I think we can give it a fair value..


Book value is one measure, but EPS also important, bcos ultimately all matters whether they are performing or not for value we are paying for shares.

banks are about how much capital you have. If you have enough capital at your disposal future earning will come naturally. Why are all these institutional buyers offering 30 for the private placement if this is not fairly valued?

mono > yes true..
but union bank was lack of capital some time ago.. that's why they went for aggressive rights issues,private placements.. they were far behind the central bank capital requirement.

14Union Bank IPO  Empty Re: Union Bank IPO Thu Feb 10, 2011 9:03 am

dhamm


Manager - Equity Analytics
Manager - Equity Analytics
Thank you all for your contribution. Smile

15Union Bank IPO  Empty UB - Investor Categories. Thu Feb 10, 2011 4:51 pm

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
Category A – Employees of UBC - preferential allocation
Category B – Customers of UBC - The Bank will notify the customers with
regard to the preferential allocation and eligibility through press notification.
Category C – Other Investors - No preferential allocation - Normal procedure.

http://forum.srilankaequity.com/u188

16Union Bank IPO  Empty Re: Union Bank IPO Thu Feb 10, 2011 4:55 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
Also they bought 51% of National Asset Management Ltd

17Union Bank IPO  Empty NAMAL Purchase by UB. Thu Feb 10, 2011 6:01 pm

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
@Gaja : You are correct.
Source : news360.lk

Milford Holdings Private Limited has decided to sell the 70% of the stake it holds in the National Asset Management Limited’s issued capital to the Union Bank and Ennid Capital Private Limited.
Under the agreement 51% of the shares would be purchased by the Union Bank while 19% will be purchased by the Ennid Capital Private Limited.

http://forum.srilankaequity.com/u188

18Union Bank IPO  Empty IPO Fri Feb 11, 2011 5:24 pm

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
The big fish would quote quote higher prices at private placement to exit with massive capital gain after IPO. Now I think SEC has brought in rules to prevent this. Just may be the bidders didn't knew this coming. This seems overvalued to me at PER 39 and its coming out at a time of credit clearance.

19Union Bank IPO  Empty Re: Union Bank IPO Fri Feb 11, 2011 11:59 pm

fair investor


Equity Analytic
Equity Analytic
The most interesting parts for me in a bank are deposit base,non performing loan ratio and the equity base

20Union Bank IPO  Empty Re: Union Bank IPO Sun Feb 13, 2011 9:15 am

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
http://www.sundaytimes.lk/110213/BusinessTimes/bt02.html

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