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BRITAK IPO: The Money Maker
Sober
#161 Posted : Thursday, June 30, 2011 9:09:33 AM
Rank: Elder

Joined: 11/27/2007
Posts: 3,604
hisah wrote:
Why is Kiarie leaving when an IPO is being floated...?


kiarie leaving was to be at the end of the month. it is the IPO timing that has coincided with his departure considering that they were waiting for the nod from CMA.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
mlennyma
#162 Posted : Thursday, June 30, 2011 9:14:08 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Guys have already made big money here we are just getting in to collect the pieces.
"Don't let the fear of losing be greater than the excitement of winning."
QW25071985
#163 Posted : Thursday, June 30, 2011 9:42:48 AM
Rank: Veteran

Joined: 3/25/2011
Posts: 946
the deal wrote:
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...


me and you know there will be NO recovery in 2H..in short he's calling a bull in second half...damn..if wishes were horses...
QW25071985
#164 Posted : Thursday, June 30, 2011 9:48:45 AM
Rank: Veteran

Joined: 3/25/2011
Posts: 946
stocksmaster wrote:
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.



i have never liked companies that derive a large chunk of their earnings from the stock market.Too much volatility if you ask me.Its just like buying tea stocks...Am also on the sidelines for this one...
mlennyma
#165 Posted : Thursday, June 30, 2011 9:49:18 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Market will be dormant if not lower from october and worsen towards elections.
"Don't let the fear of losing be greater than the excitement of winning."
the deal
#166 Posted : Thursday, June 30, 2011 11:25:58 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
I have just received an invite from the MD for some event taking place today...
mwekez@ji
#167 Posted : Thursday, June 30, 2011 4:46:11 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Business Daily

Britak’s share auction mints billions for lead owners

http://www.businessdailyafrica....4/-/tlk3g2z/-/index.html

Quote:
Mr Rawat, a Mauritian national, who chairs Britak’s parent company, owns 385.5 million shares valued at Sh3.4 billion, making him the wealthiest of the company’s principal shareholders.

Capital Markets Authority (CMA) – the market regulator – has allowed him to sell up to 103 million shares within the first two years of the IPO, a move that could earn him up to Sh933.3 million at the IPO price of Sh9 per share.

Mr Munga, the businessman who together with James Mwangi made his first billion at Equity Bank, is the second largest shareholder with 345.1 million shares held directly and through separate entities that own shares in Britak. His total portfolio in the investment firm is worth Sh3.1 billion offering him the chance to immediately harvest Sh725 million from the sale of 80.5 million shares.

Mr Mbaru – who is the principal shareholder at Dyer & Blair Investment Bank— owns 300 million shares at Britak valued at Sh2.7 billion and could pocket at least Sh726 million should he sell 80.7 million shares allowed by the CMA in the first two years.

Mr Mwangi and his wife, Jane Wangui, control 120 million shares worth Sh1 billion at Britak and could harvest up to Sh586 million from the sale of 60.1 million shares or half of their holding.


Quote:
The IPO prospectus indicates that CMA has locked in the principal shareholders to owning at least 51 per cent of the company for two years from the date of listing at the Nairobi Stock Exchange. (meaning they can reduce their holding from the 70%)
QW25071985
#168 Posted : Thursday, June 30, 2011 5:09:59 PM
Rank: Veteran

Joined: 3/25/2011
Posts: 946
the deal wrote:
I have just received an invite from the MD for some event taking place today...


hahahaha. U are just beign rewarded for the free PR you have done for them through starting this long thread and ur blog. Or you think he loves you. Anyway it shld be interesting for you as you rua shoulders with billionare.if i were you i woudnt throw away this chance.i squeeze every drop of juice out of it.
hisah
#169 Posted : Thursday, June 30, 2011 6:02:10 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
the deal wrote:
I have just received an invite from the MD for some event taking place today...


You dug up too much dung on this thing and the PR for the IPO is now torpedo'd...

They'll hire you to make it bullish again and silence you since it'll be called insider trading smile

$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
the deal
#170 Posted : Thursday, June 30, 2011 11:29:49 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
It was good to meet the Britak hierachy today..from CEO...to the management...one thing...they all have my report and its quiet something...they showed me inside...the IPO funds are well planned for...also stake in Eqty Bank is now 6.6%...is Britak a Buy? Yes for Long term.
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