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BRITAK IPO: The Money Maker
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selah
#151 Posted : Wednesday, June 29, 2011 3:15:17 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
SO the IPO is for a subsidiary of http://www.britishamericaninvestment.com which is a very profitable company which owns a substatial stake in Equity bank and housing finance.Check out some excerpts from its milestone records

http://www.britishameric...ment.com/Milestones.asp



Quote:
2005 - Acquisition of Courts, the leading household goods retail chain in Mauritius and Madagascar.
- BA Kenya acquires stake in Equity Bank (Kenya).
- Launch of Bramer Asset Management.


Quote:
2007 - Banking licence granted in Mauritius.
- Equity Bank and BA Kenya invest in Kenya Housing Finance Corporation.
- IDC (International Dealership Company) gets exclusive representation of Princess Yachts in Mauritius.


Quote:
2008 - Acquisition of South East Asian Bank (subsequently rebranded to Bramer Banking Corporation)
in Mauritius.
- Equity Bank (Kenya) acquires Microfinance Bank Ltd in Uganda.
- British American Insurance Co. (Mtius) Ltd rebranded to BAI Co. (Mtius) Ltd.
- Acquisition of ‘Agence Generale de Commerce Ltee’, the distributor of ‘Continental’ tyres.

'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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mwanahisa
#152 Posted : Wednesday, June 29, 2011 3:16:48 PM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
Lek wrote:
minimum shares set at 2000


Trying to suck in the small guys. Is this really smart? I guess that tells us they are not confident that High Net Worth and Institutions will go for it in a big way!
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Kirika
#153 Posted : Wednesday, June 29, 2011 3:33:50 PM
Rank: Member

Joined: 1/26/2011
Posts: 211
Location: Nairobi

With the consensus being that 2011 will be a difficult year for Britak, i wonder where the Management will plough the Ksh 5B IPO funds into to generate new income streams.

This might just be a flash in the pan for me, though i will seek to profit from the folly rather than participate in it so to say....
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selah
#154 Posted : Wednesday, June 29, 2011 3:34:11 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Excuse my ignorance @mwanahisa said the IPO is for the investment wing not the holding company.The holding company(Britak)is wholly owned(100%) by British American Investment Co. (Mtius) Ltd according to their 2009 Financial Report The company that own Equity and HF.

So My question is which company is being floated and what does it really own.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Layman
#155 Posted : Wednesday, June 29, 2011 4:33:44 PM
Rank: Member

Joined: 9/21/2006
Posts: 422
Location: Nairobi
.....I think am more confused now
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Wendz
#156 Posted : Wednesday, June 29, 2011 4:38:12 PM
Rank: Elder

Joined: 6/19/2008
Posts: 4,268
mwanahisa wrote:
Lek wrote:
minimum shares set at 2000


Trying to suck in the small guys. Is this really smart? I guess that tells us they are not confident that High Net Worth and Institutions will go for it in a big way!


I would think BA is just being prudent and considering the difficult timing of their IPO. I wouldn't necessarily tie it to having "confidence" or lack of it.

It is still a "pass" for me though.
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mwanahisa
#157 Posted : Wednesday, June 29, 2011 4:52:24 PM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
@selah, I never stated that it is the investment wing that is being listed. It is British American Investments Company. This is an investments holding company. It controls British American Insurance Company, British American Asset Managers and Britam Insurance Company Uganda.

selah wrote:
Excuse my ignorance @mwanahisa said the IPO is for the investment wing not the holding company.The holding company(Britak)is wholly owned(100%) by British American Investment Co. (Mtius) Ltd according to their 2009 Financial Report The company that own Equity and HF.

So My question is which company is being floated and what does it really own.


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stocksmaster
#158 Posted : Wednesday, June 29, 2011 5:39:43 PM
Rank: Member

Joined: 9/26/2006
Posts: 463
Location: CENTRAL PROVINCE
mwanahisa wrote:
the deal wrote:
they will be forced to issue a profit warning in their first year of listing...


@the deal, I have had a look again and I am forced to concede that a profit warning in 2011 is a real possibility. Too much of their income in 2010 was tied to the fortunes of the stock market. It would have been great if the offer came in with H1 earnings update but I do not expect their IM will have incorporated it.

I have also tried to strip off the market premium from the NAVs for Equity Bank and HF. This shaves off an incredible amount from the NAV, although arguably the same would happen to the likes of Centum.

With the foregoing, I would also advise folks to be extremely cautious on this IPO and only buy what they can afford to speculate on. After the IPO is over we will be able to then reevaluate when H1 2011 figures will also come in. As the deal has indicated profits are almost certain to be lower in 2011. So indeed @the deal, I agree it is a case of "caveat emptor." That will of course not prevent me from speculating.


I agree with @ Deal (nice piece in your blog on this IPO).

The IPO price of Ksh 9 is rather high factoring in that the company will be hard pressed to replicate last years results in 2011. The BRITAK shareholders have timed the IPO to perfection (on their part) when the cow is at its fattest knowing an earnings famine is on the horizon.

I think i will stay out from this one but i have a feeling an opportunity to buy it at below IPO price will present itself before the year is over.

Happy hunting.
x handle: @stocksmaster79
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the deal
#159 Posted : Wednesday, June 29, 2011 6:25:20 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Well they can come back in the market and start buying my Equity all the way to 42 bob that way me and them will be winners...LOL...CEO in his interview was hopeful of a market recovery in 2H...lets hope the NSE goes back to 4600...
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hisah
#160 Posted : Wednesday, June 29, 2011 6:49:41 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Why is Kiarie leaving when an IPO is being floated...?
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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