Zenith Bank's Invest Ment Fund Ipo

Guys, while we are still trying to understand the incentive thing, I will advise that if you want to enter this mutual fund, you will get a better deal buying into the fund when they have just listed than buying it now.
Taking a cue from the just listed ARM aggressive groeth fund and the IBTC ethical fund when they were listed, you would have noticed that these funds were listed below the offer price. This is because by the time the cost of raising the funds etc are deducted from the fund, it gives it a lower NAV (Net asset value) at the time of listing. (Note that this is not illegal).
Therefore, if you buy now, you will be incurring the cost of raising money for this offer, but if you buy post listing, you will get a better bargain.
Note that the time for entering the fund post listing is when they have just listed. if you buy way after they have listed you might/might not get the price advantage (depending on whether the market is bullish or bearish).

if you look at pg 3 where they have the yield forecast for the periods ended, , you will see that the NAV for the beginning of the year 2008 (which translates to when they list) is =N=956,500,000. If you divide this figure by the 100 million units on offer, you will get a price of =N=9.56. this is what the price is going to be when they list. So why buy it for =N=10 now when you can buy it for =N=9.56 when it is eventually listed.

If u want to invest, i will advice u wait until they have finished the offer and they beging investing. The reason has been explained by Apache. You gain nothing by investing now.

If u have spare cash, invest it in Zenith bank or some other stock that u think will give u 30%+ return bw now and December. I think Zenith bank is a good buy at N50.

When u exit Zenith bank or whichever stock u invest in, u can then enter the mutual fund if u are still interested by then.

Decision is urs to make

@lermy


This is a very good insight.  Thanks a million!  l was thinking of buying now, l will use my money for another thing in the meantime.  Thx alot.