|
frankiriri (m)
|
Please hear me out, This is my analysis of Dangote Flour Opinion : I don't think Dangote flour will be as successful as Dangote SugarReason :When people bought Dangote Sugar Share, people were actually buying into the Company, i.e the money was being used for the expansion of the company, thereby making the company to have competitive advantage in the market. They performed better than their competitors due to the large capital base BUT The case of Dangote flour is different. Aliko Dangote is actually selling his shares in Dangote Flour. So, the money is not for the expansion of Dangote Flour. Our shares money in Dangote flour is for Aliko Dangote NOT for Dangote flour Dangote Flour would maintain the same capital base after ending the sale of the shares as it had before the sale. The competitive advantage wont be there, and therefore , the rise in the value of shares wont be as anticipated. This is just my layman analysis and I stand to be corrected plssssss  Point of correction. you are mistaken about the nature of the DSR offer. Check your prospetus again. You will realise that it was also an offer for sale. Dangote was selling 30 percent of his stake in the company. So the money went to him and not the company. The fact that the money is going to Dangote should not affect your investment decision if you think the company is good and is worth the asking price. So I suggest that we all wait for the prospectus. |
|
|
|
|
|
frankiriri (m)
|
@ MT,
Competitive advantage? Dang Sugar is a monopoly, they have no competition! And the money you paid into Dangote Sugar could not have resulted in an expansion already; those things take time.
Here is my hypothesis on why Dangote Sugar did really well. In December (when it came to the market), this bull run had not started and companies were trading at PEs ~15 and Dangote offered Sugar at a PE of 10. Following the bull run, PEs of 20-30 are now commonplace and going from an offer PE of 10 to a current PE of 20 is what caused Dangote to double. There is no Dangote magic touch, no competitive advantage, no expansion. There has been a bull run that caused almost all the companies to double over that period.
If Dangote had known he could sell Dang Sugar at a PE of 20 a few months later, I'm sure he would have waited and sold at ~N30.
Now to Dang Flour, read the prospectus and calculate the forward PE based on the earnings forecast and see if it's much lower than other companies. That (and not the Dangote name) should influence your buy/no-buy decision.
Insightful and straight to the point. As usual your analysis is right on target.  |
|
|
|
|
|
MT
|
@ frankriri and easimoni,
Please when the prospectus is out, we need your comment here. It will help some man out there!
|
|
|
|
|
|
mimiko (f)
|
guys i read it in the papers that japaoil is coming out pulic offer for 3.90k right issue for 2.50 please what do guys think about it
|
|
|
|
|
|
Panadol (m)
|
How much do you plan to invest on the upcoming Dangote Flour IPO?
|
|
|
|
|
|
Iwerebor (m)
|
I didn't subscribe for Dangote Sugar but I heard the Share certificate was out fast. Something tells me that the proposed less than two week period of sale of Dangote Flour would mean a quick release of certificates.
Can anyone remind me of how long it took DSR to release their certificate?
|
|
|
|
|
|
wanaj0
|
I didn't subscribe for Dangote Sugar but I heard the Share certificate was out fast. Something tells me that the proposed less than two week period of sale of Dangote Flour would mean a quick release of certificates.
Can anyone remind me of how long it took DSR to release their certificate?
You heard wrongly!!!! For those that subscribed for anything above 50,000, the registrar is just despatching such certificates now. Some went to the registrars office to PERSONALLY pick up their certificates. Most are yet to verify them. If you go for any offer, no that you are in it for the LONG TERM or else you will get your fingers burnt! |
|
|
|
|
|
lokia (m)
|
hello everyone
when is the dangote offer coming out? i having been waiting, checking with my stockbroker but have not gotten any replies.
does anyone know when it is actually coming out?
|
|
|
|
|
|
MT
|
@ all,
If I fill my CSC number in any of the IPO or PO form, will I still get the paper certificate ?.
If I wont get the paper certificate, will there still be a delay in creditting my CSC account with the number of units bought ?.
I asked these questions because I was trying to figure out how one could beat the trap of delay in getting the certiicate and I then thought that CSC account should be able to handle that.
Please enlighten me
|
|
|
|
|
|
atilla (m)
|
Hi, This is the information I have, if you want to purchase these shares let me know before the date so I can contact you as soon as its opens and get the application forms to you. I work for a stock broking firm that will act as a recieving agent to the offer.
Company is valued at N75bn or $590m.
* Each share is valued at N15 pending all regulatory approvals.
* Number of shares to be sold: 1.25bn of 5bn i.e. 25% of the company will be sold.
* Firm underwriting by 11 issuing house (each house will underwrite N1.7 bn of the offer) – FCMB is the lead issuing house.
* Offer date likely to be end of July i.e. within the next 2 weeks.
* Offer duration will only be 10 days.
* No preferential allotment – though the issuer has requested a proviso for business associates.
* NSE quotation committee meeting will hold on the 17th of July and issuing houses are currently responding to some observations by SEC, these are the last regulatory hurdle that must be cleared prior to the offer.
* Prospectus will be available as soon as the offer opens.
obtained from proshareng website
|
|
|
|
|
|
Temmie10 (m)
|
today is 26th july so the date u suggest of end of July does not sound realistic
|
|
|
|
|
|
atilla (m)
|
Yes it doesnt sound realistic anymore. I put it there so you would know it would be starting very soon. Realistically it should be next week or the week after.
|
|
|
|
|
|
windywendy (f)
|
My broker just informed me that mid to late August is a more realistic timeline, as they're currently sorting out stuff with the NSE
|
|
|
|
|
|
Rockstrong (m)
|
Guys, news has that moves by Dangote Flour Mills to float an offer for sale of 1.25 billion shares at N15.00 hit a brick wall during the week as the quotations committee of the Nigerian Stock Exchange (NSE) rejected the projections tendered for the offer. The Dangote offer, which should have opened this week to contend for investors’ funds alongside Access Bank offer, has now been put on hold pending when the company can submit a more satisfactory management account. Information has it that the offer may not open until next month.
, Culled from financial standard
|
|
|
|
|
|
MyPeace (f)
|
Guys, news has that moves by Dangote Flour Mills to float an offer for sale of 1.25 billion shares at N15.00 hit a brick wall during the week as the quotations committee of the Nigerian Stock Exchange (NSE) rejected the projections tendered for the offer. The Dangote offer, which should have opened this week to contend for investors’ funds alongside Access Bank offer, has now been put on hold pending when the company can submit a more satisfactory management account. Information has it that the offer may not open until next month.
, Culled from financial standard
You are right, l read it too. but l believe they will still sort things out. the question is "how soon'? |
|
|
|
|
|
|
|
fojames (m)
|
dANGOTE fLOUR IS DEFINITELY a good buy no matter when they come out with their offer. People are arguing about how well it will do, the gist is don't try comparing it with Dangote Sugar but I can assure you that it will do very well.
I'm waiting for the issues surround ing the offer to clear up, once it hits the market, there is going to be a rush for it and the price will appreciate in a matter of weeks, just watch out!
|
|
|
|
|
|
Temmie10 (m)
|
dANGOTE fLOUR IS DEFINITELY a good buy no matter when they come out with their offer. People are arguing about how well it will do, the gist is don't try comparing it with Dangote Sugar but I can assure you that it will do very well.
I'm waiting for the issues surround ing the offer to clear up, once it hits the market, there is going to be a rush for it and the price will appreciate in a matter of weeks, just watch out!
@ fojames, why do you think the offer would be successful? Have you seen the prospectus? Do you know why the ipo has been delayed. Note that i am not disagreeing with you. i am just questioning your reasoning and demanding that you back up your optimism with facts? |
|
|
|
|
|
foryou (m)
|
what is going on with the Dangote Flour now? just want to know
|
|
|
|
|
|
![Nairaland [Nigerian Forum] Home](http://www.nairaland.com/Themes/default/images/english/home.gif)
Author
