Exactly who will they sell 2B worth of goods to?

This one is an insult to the NSE.

Did I see Kirimara Limited 1,999,273 10.19%

@mainat long time; @surealligator sure stuff!
Forgive ignorance in my thoughts...

So it seems the IPO is to finance more growth, perhaps also reduce 86m in short term borrowings + 195m in trade payables.

I see Kibaki having 12% through Pinpoint Investment. Happy to see Diana Bird former MD having 11% and Muchiri Wahome 4%.

The full offer represents 39.5% of Deacons. Old share holders are left with 60%.



Business shows gross profit margin of 45% in a bid to recurit more middle class (LSM 8) customers. Net profit margin of ~6%.

Past EPS: 4.06 and Forecast EPS: 7.59
Implied PE: 15.41x and Forecast: 8.23x
Past DPS: 1.79

Tanzania is tough market - losses. In Business Daily graphic, I see Truworths+Woolworths with about 60% major contributor. Reality seems Deacons presently earns most from 6% Kenya - Women in upper class. New entrants Adidas and Life Fitness are the only ones perhaps touching men more...


Ebb and Flow
I must confess I've had personal turmoil when it comes to investing. At the time of KCB Rights Issue, a mass market financial company with regional presence at a P/E of 9.2, I thought myself smart to say NO. Lately I think my decision was right but timing wrong.

Here we have a commercial brand/retail company, targeted at premium customers, forecasting to grow sales at 40% and EPS by 80% (through operating leverage). To trade OTC so I need to wait until NSE blast!

I wonder, what's Jubilee's forecasted growth rate and should I buy more of that instead? If I looked at Diamond Trust Bank, I wouldn't budge.
Decisions, decisions...I've always had a thing for fashion!

As per Surealligator's post:

Current shareholding No. Of Shares %age Shareholding
Swedefund International Aktiebolag 3,816,225 19.45%
Pinpoint Investment Limited 2,365,940 12.06%
Charles Mwangi Gathuri 2,165,940 11.04%
Diana Bird 2,165,642 11.04%
Kirimara Limited 1,999,273 10.19%
Trikay Development 1,717,273 8.75%
Aureos East Africa Fund LLC 1,382,667 7.05%
Muchiri Wahome 778,672 3.97%
Subtotal 16,391,632 83.54%
Others 3,229,965 16.46%
19,621,597 100.00%

I've realised a commonality on most IPO's, they all put an emphasis on their profitability and their prospects of growth in terms of sales. They give rosy pictures through profitability & sales ratios but what investors tend to forget while reading these prospectus during this era of increasing shareholders wealth is that the strength of the balance sheet is what helps in profitability and reservation of shareholders wealth. Check on their debts & asset base carefully & perform some ratio analysis too