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

EXPOLANKA HOLDINGS PLC (EXPO.N0000)

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101EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 3:50 pm

Aamiable


Vice President - Equity Analytics
Vice President - Equity Analytics
Many investors look for open market.... already listed well known stocks are better than all these IPO. at the end small number of shares given for a large sum... waste of time and funds....

Smile Smile

102EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 3:56 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
@econ wrote:
@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?

yes this private placement thing should be regulated more by cse. otherwise IPOs are not attractive for retailers as only big players just gain billions.

econ i didn't want to promote or demote any shares but this is a answer i posted to another question just have a look - http://forum.srilankaequity.com/t2893-private-placement#19424

103EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 5:18 pm

econ


Global Moderator
@Gaja wrote:
@econ wrote:
@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?

yes this private placement thing should be regulated more by cse. otherwise IPOs are not attractive for retailers as only big players just gain billions.

econ i didn't want to promote or demote any shares but this is a answer i posted to another question just have a look - http://forum.srilankaequity.com/t2893-private-placement#19424

Thanks gaja.. yeah it seems EXPO never issued private placements just before the IPO unlike union bank IPO. . so 6 rupee private placement 2 years ago was not a problem for this IPO since then company might have grown lot. for example 2 years ago bfl trading at below 10 now at 480.

104EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 5:38 pm

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@Gaja wrote:
@econ wrote:
@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?

yes this private placement thing should be regulated more by cse. otherwise IPOs are not attractive for retailers as only big players just gain billions.

econ i didn't want to promote or demote any shares but this is a answer i posted to another question just have a look - http://forum.srilankaequity.com/t2893-private-placement#19424

Yes Gaja.. Private placement is really helped to these company to restructure the balance sheet and to show good picture when it come to IPO. When u analyze the union Bank IPO and private placement, 15Mn shares were issued on IPO, I am not sure about the private placement nos. However in the very 1st day itself 17.5 Mn shares were traded between 38-45. so some of the investors who bought from private placement issue, would have sold even in 1st day itself.

I guess, same pattern will happen to EXPO also... Further the investors who bought from private placement have been waiting for long time ( 2 years). But Union bank private placement was taken place before 6 months of IPO. I guess..

However we do not tell anything in CSE.....

Happy Trading

105EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 6:24 pm

TuskerLK


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

Yes Gaja.. Private placement is really helped to these company to restructure the balance sheet and to show good picture when it come to IPO. When u analyze the union Bank IPO and private placement, 15Mn shares were issued on IPO, I am not sure about the private placement nos. However in the very 1st day itself 17.5 Mn shares were traded between 38-45. so some of the investors who bought from private placement issue, would have sold even in 1st day itself.

I guess, same pattern will happen to EXPO also... Further the investors who bought from private placement have been waiting for long time ( 2 years). But Union bank private placement was taken place before 6 months of IPO. I guess..

However we do not tell anything in CSE.....

Happy Trading


Seyon, Expo placement took place recently, about 4 months back..JKSB was the managers to that also. they have placed a full page add sometime ago regarding the placements they have handled successfully.

106EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 7:19 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
tinyman wrote:
@seyon wrote:

Yes Gaja.. Private placement is really helped to these company to restructure the balance sheet and to show good picture when it come to IPO. When u analyze the union Bank IPO and private placement, 15Mn shares were issued on IPO, I am not sure about the private placement nos. However in the very 1st day itself 17.5 Mn shares were traded between 38-45. so some of the investors who bought from private placement issue, would have sold even in 1st day itself.

I guess, same pattern will happen to EXPO also... Further the investors who bought from private placement have been waiting for long time ( 2 years). But Union bank private placement was taken place before 6 months of IPO. I guess..

However we do not tell anything in CSE.....

Happy Trading


Seyon, Expo placement took place recently, about 4 months back..JKSB was the managers to that also. they have placed a full page add sometime ago regarding the placements they have handled successfully.


Friend Page 44 is saying this " 3.7 CAPITAL STRUCTURE
3.7.1 Overview
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."

107EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 7:31 pm

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Gaja wrote:

Friend Page 44 is saying this " 3.7 CAPITAL STRUCTURE
3.7.1 Overview
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."


yes mate, actually there were no placement during last two years, but they have sold considerable amount of shares to the people they want

108EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 9:06 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
tinyman wrote:
@Gaja wrote:

Friend Page 44 is saying this " 3.7 CAPITAL STRUCTURE
3.7.1 Overview
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."


yes mate, actually there were no placement during last two years, but they have sold considerable amount of shares to the people they want

Well there may be lots of reasons as to why they decided to give for somebody, also there is no guarantee that present shareholders are not going to dispose there shares as well

109EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 9:22 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
@econ wrote:
@Gaja wrote:
@econ wrote:
@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?

yes this private placement thing should be regulated more by cse. otherwise IPOs are not attractive for retailers as only big players just gain billions.

econ i didn't want to promote or demote any shares but this is a answer i posted to another question just have a look - http://forum.srilankaequity.com/t2893-private-placement#19424

Thanks gaja.. yeah it seems EXPO never issued private placements just before the IPO unlike union bank IPO. . so 6 rupee private placement 2 years ago was not a problem for this IPO since then company might have grown lot. for example 2 years ago bfl trading at below 10 now at 480.

Well friend this is the point to want bring it, whether is it worth 14/= or not is the individual opinion, but when i see the posts most of them want to say "that they gave to few selected investors at 6/= and come to IPO at 14/= and its not acceptable" you can see how the stock prices move during the last two years you mention BFL, but more than 90% of the shares went up dramatically during the last two years, and Expo business also connected to International Trade and see how all the companies having relationship with the international business effected by the global recessions, also around 2 years back the lending rates of the bank around 20%, so Expo as well as investors could have felt 6/= was acceptable price that time

THE PURPOSE OF THIS POST IS TO JUST TO INFORM INVESTORS SPECIALLY SMALL INVESTORS EVERY BODY INVEST IN THE CSE OR ANY BUSINESS TO MAKE PROFIT, BUT EXPECT ONLY REASONABLE RETURN. I AM INVESTING IN CSE FROM 2002 ONWARDS AND I AM HAPPY WITH 35 TO 40% ANNUAL RETURNS, YES SOMETIMES I GOT MORE THAN 100% IN SOMETIMES I EXISTED WITH LOSSES

110EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 9:26 pm

Aamiable


Vice President - Equity Analytics
Vice President - Equity Analytics
Two years before, any private business can have various investments ….….if it is pre IPO and just before public listing, then only it becomes an issue.

Many deals must have taken place before other IPOs. ……..

If they held for two years they might keep them long term……….. Can't say..might hold for some time..


Very Happy Smile Very Happy

111EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 9:31 pm

innam

innam
Manager - Equity Analytics
Manager - Equity Analytics
why is this so hard to understand.....the private placement at 6 rupees was done less then six months ago.

what the prospectus says is that NO NEW ALLOTMENT was done during the last two years.....what they have done is SELL existing shares at 6.....because this is a SALE of existing shares this is not covered by the SEC 1 year rule. This is why concern was raised in this thread that those who got 300 million shares at 6 less than 6 months ago may now dump them on to the market once the trading starts.

as to why they sold 300 million at 6 and why they are selling 172 million at 14....well you have ask that from the managers/owners and advisors.....but the if you scratch the surface you can see that the big boys make money in IPOs at the expense of retailers who treated like fools (6 rupees for the big boys and friends while retailers are expected to pay 14).

this is my read of the fiasco, i may be wrong, if so please provide a better explanation.

112EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 9:40 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
@innam wrote:why is this so hard to understand.....the private placement at 6 rupees was done less then six months ago.

what the prospectus says is that NO NEW ALLOTMENT was done during the last two years.....what they have done is SELL existing shares at 6.....because this is a SALE of existing shares this is not covered by the SEC 1 year rule. This is why concern was raised in this thread that those who got 300 million shares at 6 less than 6 months ago may now dump them on to the market once the trading starts.

as to why they sold 300 million at 6 and why they are selling 172 million at 14....well you have ask that from the managers/owners and advisors.....but the if you scratch the surface you can see that the big boys make money in IPOs at the expense of retailers who treated like fools (6 rupees for the big boys and friends while retailers are expected to pay 14).

this is my read of the fiasco, i may be wrong, if so please provide a better explanation.

This possibility also might be there not saying NO

113EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 9:55 pm

innam

innam
Manager - Equity Analytics
Manager - Equity Analytics
let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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.....

114EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Fri Apr 22, 2011 10:01 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
@innam wrote:let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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.....

Yes thanks for the information, as per that existing shareholder transfer part of their holding to 3rd parties and now the company is issuing new 172 million shares

115EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 7:03 am

econ

econ
Global Moderator
@innam wrote:let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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.....

Thanks innam.. yeah now I understand even though they have not issued new capital at 6 rupees they sold 300 million shares at 6 to thier friends less than six months ago. so this is just fooling retailers to give maximum returen to big players..in my opinion This is unethical. if they want to give shares to thier friendds just before the IPO they should have given same price as IPO.so I think we should publish these type of unethical things done by companies. I hope SEC regulate these type of things happens in the future.

116EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 9:05 am

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@innam wrote:let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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.....


Well explained innam.. Thanks

Same experience we got from Union Bank 15Mn shares were issued on IPO, However in the very 1st day itself 17.5 Mn shares were traded between 38-45. so some of the investors who bought from private placement issue / right issue, would have sold even in 1st day itself. I guess, this will happen to Expo also even @ less than the IPO price.

117EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 9:37 am

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@innam wrote:let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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.....

Well explained innam.

generally IPOs gives the price discovery function to the shares, since the market price is expected to reflect all the price sensitive informations we generally see a very high gain on the first day trade itself. however now the recent IPOs were issued at price which priced closely to the fair value of the share. that results in less gains than we expect (first day).

Innam,Seyon,Econ,Gaja and all others,

isn't this the time to look at the IPOs with the medium term view instead of worrying about short term/first day returns. even-though the share performed less than what we expect in the day One, those have proven giving massive returns on medium term. ex.LGL,PCH,PAP,ODEL etc

I have published a thread on this topic few days back, appreciate your views

http://forum.srilankaequity.com/t2808-upcoming-ipos-the-way-forward



Last edited by tinyman on Sat Apr 23, 2011 9:39 am; edited 1 time in total (Reason for editing : typo)

118EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:09 am

ssb

ssb
Manager - Equity Analytics
Manager - Equity Analytics
expo lanka rely on the Transportation
so will radiation effect them as well

119EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:22 am

TuskerLK

TuskerLK
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@ssb wrote:expo lanka rely on the Transportation
so will radiation effect them as well

EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Destin10

https://i.servimg.com/u/f21/16/41/50/09/destin10.jpg

these are the countries expo is active. their main active market is india, i don't think radiation effect has anything to do with the Expo performance

120EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 11:42 am

babytrader


Equity Analytic
Equity Analytic

I feel that the prospectus should give a date of transactions for these transfers without just saying last 2 years. I guess it goes to show how the directors of the company act when it comes to to shareholders

Also i think the SEC should add some restrictions on 1. disclosure of such events 2. limit on the price difference between the transfer vs IPO 3. limit the number of private placement shares to be at least 50% of the IPO number of shares.

I am not sure that many retailers will realize whats going on though..personally for me i am thinking of sidestepping this IPO. but i am pretty sure that if i ask my stockbrokers recommendation he would not even mention this.

p.s is there anyway we can email the company/ directors and ask for a clarification( being exact dates ) of these transactions ?

121EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 3:15 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@innam wrote:let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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.....

Thanks indeed for showing us the big picture by nicely fitting apparently contradictory facts. + from me. If I could give more I will.

This is what we expect from other members too, practicing the Mosac Theory.

Very Happy

122EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 9:05 pm

FKhamissa


Stock Trader
@innam wrote:let's explain things in simple terms so that even a child can understand. who knows maybe children may invest in these IPOs....

on page 45 of the prospectus THEY say "There were no shares issued for two (02) years
preceding the date of the prospectus."

what this means is that no NEW shares were ISSUED it does not talk about selling of existing shares

on page 44- table 11.1
they show "Material Transfers of Shares in the two years preceding the date of application,
25th March 2011"

any body confused should take a look at this table (11.1) a total 300 million was sold by the existing shareholders at 6 rupees although no exact date is given this 6 rupee sale was done less than SIX MONTHS ago.
if you don't know the meaning of preceding please do a google search.

so don't get confused....these are the facts, expolanka management sold 300 million shares at 6 rupees to a selected group of big players (and maybe some friends) less than six months ago.....now they are selling 172 million shares at 14 to retailers.....the difference is that the money from the 300 million share sale went to the existing shareholders (total of 1.8 billion) while the money from the 172 million share sale is going to the company.

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 thanks for the info.. how ever i am just thinking about the your comments and a few of your ideas dont seem to stack up..

How a company would usually value their shares is they would look at their one year forward earnings, decide on a multiple based on the market or industry average an fixed their share price accordingly.

Assuming Expo has based their value on forward earnings 2012 it is only common sense that the share value be higher on their IPO. this is simply due to the funds of the IPO flowing back into the company as mentioned in their prospectus for debt retirement (saving in finance cost) new project and additional working capital. this will boost the companies performance for the year 2012. If like you mention the private placement was a sell down of shares the proceedings would have not come into the company and there fore the boost the company would get during the IPO must have not been there.

to add to the disparity

Also generally there is a percentage discount between a usual private placement price and IPO price as private companies are not governed by the corporate governance regulations as public companies. due to this investors associate a discount on private placement price due to the additional risk.

Moving on to your second concern about it being given to friends.. by looking at the daily mirror article on friday that listed the top shareholders. it seemed to be all the top companies of the country making the private placement seem more like a strategic move than any thing else.

I think this might be the first IPO worth investing in as the regulation of 40% retail allocation will ensure that us retail blokes will get a fair allocation specially as it is a large issue

40% of 2.4 Billion comes to 960 Million

Retail investor - person who invest 100,000 or less

960,000/100,000 - 9600 the retail allocation needs to get 9600 applications to be fully subscribed. this is a huge amount and due to its size all retail investors will be sure to get a good size of their application.




123EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:09 pm

innam

innam
Manager - Equity Analytics
Manager - Equity Analytics
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.....

124EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:20 pm

babytrader


Equity Analytic
Equity Analytic
@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

125EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:34 pm

csekanex@gmail.com


Stock Analytic
Stock Analytic
@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

I followed this thread and seems that Innam has a point, Its not the return you can make but why do we have to pay a such big premium ? Surely some of the pre-IPO shares will be disposed in opening days and you know what will happen then ...... As Innam correctly said even Rs 9 is a huge 50% gain... Just do your study.... I don't think it will be a very good investment to make a quick gain ... I may be wrong because CSE behave in very primitive way most of the time Laughing

126EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 10:45 pm

innam

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 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat Apr 23, 2011 11:01 pm

Antonym

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 5 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 5 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 5 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun Apr 24, 2011 6:21 am

econ

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.

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