EXPOLANKA HOLDINGS PLC (EXPO.N0000)

achala75 wrote:I heard that WAPO is willig to by a big stake of Expolanka before going for a IPO. May be this news is not correct. Pl. check.

Wapo already bought a chunk under private placement. I heard IPO price would be twice as the WAPO bought price..

You are correct hotstock, According to WAPO's letter to CSE dated 10.01.2011 they have made an assessment of the shere value of EXPO LANKA.That was Rs. 249,600,000/-

i heard JKH has bought 5% of Expo shares in the Private placement but im not sure under which name/company.it was not announced was it??
.Im starting to get mote curious about expo lanka IPO.

I think their prefer to go with the private placement, may come to IPO with a unit

Gaja,

these big companies eying EXPOLANKA. Why ???????????

Is it a growth gem ??????

Well i am not sure about there plans, but expo group is growing stage by stage in reasonable way, but being family company their funding might be limited, so they also might prefer the private funding than IPO's, so they have to approach reliable fund providers as well.

Because the fact is that anybody has fund is not enough to enter into a pvt company unless the existing shareholders give their approval, on that basis i think expo selected Carsons Group to bring the money in, but i don't know whether JKH also some holdings as well have to check.

I think when any private companies select the partners for fund, they might look for the Management of the fund provider, their business, non financial benefits the fund provider may bring to the business and many more

As per the new rules of CSE, these private placements have to be locked till a year is passed for them to sell.. whatever the company arrives at such placement has to find a future value in the companies they invest in... its not more a quick buck..

Didnt go into looking to their financial staability yey but if WAPO or JKH is bidding on this, my view is that this IPO will have some long term value as well..

I think JKH or WAPO will NOT enter into a company for short term benefits

In selecting IPO's i feel when the issued share is quite large its more not worth to invest.

e.g. a company having a shares of 1 billion then the company has to earn 1 billion to increase there EPS by 1.

a billion is not so easy to double. Unlike where BFL earned 160 million and having an EPS of 10 since they have a only 16 million shares.

these are my thoughts, it may be totally wrong. Please help me understand more on that.

Sorry KIRI, u r correct. I was confused. There r so many up coming Lanka's in the Market now.

It looks like only some units of the holding company would go for IPO.

Refer this news.

Rs 2 billion IPO
Mr. Yusoof noted that this was done in a bid to gear up for the Initial Public Offering (IPO), restructure the debt in the companies while revving up for immediate growth in the core business. “We are hoping to raise about Rs 2 billion through the IPO and the total sell down (with the recent private placement) will be 25% of the company,” he said.

He said all firms, except their corrugated business, aviation and garments will not come into the IPO. He said that Expolanka is gearing to expand the freight forwarding business. “We’ll be eyeing acquisitions in freight forwarding as well,” he said. He said the company will apply to the Securities and Exchange Commission for sanctions to go for an IPO within the first half of this year.

http://sundaytimes.lk/110220/BusinessTimes/bt28.html

Gaja wrote:I think JKH or WAPO will NOT enter into a company for short term benefits

One of the purpose of WAPO right issue is to subscribe Expo Lanka through private placement.

If Expo Lanka IPO is on the cards, people should consider subscribing Expo IPO than purchasing WAPO at exobient prices...Anyway, people will never learn in the CSE

did expo Lanka went in to IPO ?????
when???

$$$ wrote:Respected company that has been in business for years ....

They are calling applications for a MBA/CFA qualified person to the Head the strategic Plannining and Business Development. The job is to evaluvate new business opperortunities and make strategic recommendations.

Looks they are getting ready to expand.

milanka wrote:

$$$ wrote:Respected company that has been in business for years ....

They are calling applications for a MBA/CFA qualified person to the Head the strategic Plannining and Business Development. The job is to evaluvate new business opperortunities and make strategic recommendations.

Looks they are getting ready to expand.

Well I could apply it seems... where did u get this?

I think , this anoucement was discussed. Some PLCs invest prior to IPO... for added advantage and greater profits.


http://www.cse.lk/cmt/upload_cse_announcements/261301658536_.pdf

the private placement being at Rs.6 according to guardian capital announcement. but i hear rumors the IPO being even more than Rs.15. big difference

Can it happen ????????

smallville wrote:

milanka wrote:

$$$ wrote:Respected company that has been in business for years ....

They are calling applications for a MBA/CFA qualified person to the Head the strategic Plannining and Business Development. The job is to evaluvate new business opperortunities and make strategic recommendations.

Looks they are getting ready to expand.

Well I could apply it seems... where did u get this?

Half page advert on Daily FT on Saturday 9th April.

smallville wrote:

milanka wrote:

$$$ wrote:Respected company that has been in business for years ....

They are calling applications for a MBA/CFA qualified person to the Head the strategic Plannining and Business Development. The job is to evaluvate new business opperortunities and make strategic recommendations.

Looks they are getting ready to expand.

Well I could apply it seems... where did u get this?

WOW..........you got CFA?...............

ExpoLanka - Rs 2.4 bn IPO opens on 12 May 2011
172 mn shares offered @ Rs 14 each
http://www.cse.lk/cmt/upload_cse_announcements/6461302596552_.pdf

Recent Pre-IPO private placement (sell down) seems to have been done at Rs 6 per share - JKH, WAPO and Logan Rockfeller Global were among initial buyers

cse.alpha wrote:ExpoLanka - Rs 2.4 bn IPO opens on 12 May 2011

172 mn shares offered @ Rs 14 each

http://www.cse.lk/cmt/upload_cse_announcements/6461302596552_.pdf

Recent Pre-IPO private placement (sell down) seems to have been done at Rs 6 per share - JKH, WAPO and Logan Rockfeller Global were among initial buyers

the pricing to retail investors @ very high premium.... See WAPO & JKH and others already gain more than Rs.8 capital gain...

Look at WAPO capital gain @ rate of 14 ( 41,600,000* = Rs.332,800,000... This only at IPO price... If it is in the MKt price WAPO would be getting more than Rs.500Mn...

In future WAPO also would come out with strong portfolio like GUAR and CINV..... Better to look in to WAPO if the price comes down...

Happy Trading

WAPO has 25.8 mn shares in issue now - its net asset value (NAV) per share, even after allowing for 350% appreciation in 41.6 mn Expolanka shares (cost Rs 6 each - at Rs21, capital gain is around Rs 624 mn) is still under Rs 50 per share.

After 75 for 2 rights issue @ Rs 20 per share that raised Rs 503 million, WAPO's adjusted net book value (NBV) per share would be approx Rs 20 - total NBV of Rs 524 mn (Rs 250 mn worth of Expo Lanka shares, and Rs 270 mn of cash).

If ExpoLanka trades at Rs 21 (up 50% from Rs 14 IPO price), WAPO's Expo investment would be worth Rs 874 mn.

That would still raise WAPO's adjusted NBV per share by only around Rs 24 to approximately Rs 45 per share.

At Rs290, investors paying more than 6 times adjusted NBV, for what is basically an investment trust where net asset value is better valuation method than PER or discounted free cash flows methods, seem to be very confident of management ability to deliver exceptional super normal returns on adjusted asset base.

WAPO will do well, but will it do well enough to justify current prices of around Rs 290? Similar, but much larger investment trusts such as CINV and GUAR do not trade at such 6 times premiums to NAV.

Are they Pre IPO investments ?

cse.alpha wrote:WAPO has 25.8 mn shares in issue now - its net asset value (NAV) per share, even after allowing for 350% appreciation in 41.6 mn Expolanka shares (cost Rs 6 each - at Rs21, capital gain is around Rs 624 mn) is still under Rs 50 per share.

After 75 for 2 rights issue @ Rs 20 per share that raised Rs 503 million, WAPO's adjusted net book value (NBV) per share would be approx Rs 20 - total NBV of Rs 524 mn (Rs 250 mn worth of Expo Lanka shares, and Rs 270 mn of cash).

If ExpoLanka trades at Rs 21 (up 50% from Rs 14 IPO price), WAPO's Expo investment would be worth Rs 874 mn.

That would still raise WAPO's adjusted NBV per share by only around Rs 24 to approximately Rs 45 per share.

At Rs290, investors paying more than 6 times adjusted NBV, for what is basically an investment trust where net asset value is better valuation method than PER or discounted free cash flows methods, seem to be very confident of management ability to deliver exceptional super normal returns on adjusted asset base.

WAPO will do well, but will it do well enough to justify current prices of around Rs 290? Similar, but much larger investment trusts such as CINV and GUAR do not trade at such 6 times premiums to NAV.

Yes cse.alpha

Thanks for the good input on WAPO... Yes WAPO this price level Pretty much high.. However this will perform in future days as their strategy to invest with private equity in pre IPO session and come out with massive capital gain.. Now they used the half of the rights issue proceeds.... will see, balance half where there are going to invest...........

Happy Trading

ssb wrote:did expo Lanka went in to IPO ?????
when???

CSE has announced today the offer for subscription by Expolanka

http://www.cse.lk/cmt/upload_cse_announcements/6461302596552_.pdf

cse.alpha wrote:WAPO has 25.8 mn shares in issue now - its net asset value (NAV) per share, even after allowing for 350% appreciation in 41.6 mn Expolanka shares (cost Rs 6 each - at Rs21, capital gain is around Rs 624 mn) is still under Rs 50 per share.

After 75 for 2 rights issue @ Rs 20 per share that raised Rs 503 million, WAPO's adjusted net book value (NBV) per share would be approx Rs 20 - total NBV of Rs 524 mn (Rs 250 mn worth of Expo Lanka shares, and Rs 270 mn of cash).

If ExpoLanka trades at Rs 21 (up 50% from Rs 14 IPO price), WAPO's Expo investment would be worth Rs 874 mn.

That would still raise WAPO's adjusted NBV per share by only around Rs 24 to approximately Rs 45 per share.

At Rs290, investors paying more than 6 times adjusted NBV, for what is basically an investment trust where net asset value is better valuation method than PER or discounted free cash flows methods, seem to be very confident of management ability to deliver exceptional super normal returns on adjusted asset base.

WAPO will do well, but will it do well enough to justify current prices of around Rs 290? Similar, but much larger investment trusts such as CINV and GUAR do not trade at such 6 times premiums to NAV.

Im too agree with cse. I calculate when the WAPO made thr initial announcement that period wapo arnd 800 & aftr increase and right issue. i check with 800 levels it should be arnd 40 - 45 .... bt now its higher Rs. 280 + ....

Further with new rules WAPO cant sell on EXPO 1st day @ Mkt. with my knwledge WAPO shd need many this kind of capital gains to justify with current mkt rate.

Pls point my mistake to correct me

Cheerz

mark wrote:

smallville wrote:

milanka wrote:

$$$ wrote:Respected company that has been in business for years ....

They are calling applications for a MBA/CFA qualified person to the Head the strategic Plannining and Business Development. The job is to evaluvate new business opperortunities and make strategic recommendations.

Looks they are getting ready to expand.

Well I could apply it seems... where did u get this?

WOW..........you got CFA?...............

It smells MBA nuh?

GOT IT MILANKA

so basically a person applies upto 7,100 shares will be considered as retailer. am i right? I think some days back they appointed some reputed directors also to their board - http://forum.srilankaequity.com/t2422-expolanka-holdings-appoints-independent-directors-pre-ipo

this should be really good....