the initial public offer(IPO) of Nigerian Bag Manufacturing Company Plc commenced yesterday to be closed on 12th dec @ N3.90K.Is it worthwhile to buy into this company?

d ppl wey be expert for this forum say make we "thread softly" with this offer. I tell u, it is better to listen to them ooo. na dem dey ground.

Looks like a good buy as it is 80% fully underwritten by Zenith according to the news media. Have you got an on line link to the prospectus.

Hi,
Going by the market position of this company.I strongly forsee them making waves in the near future.
So quys while you sit and argue over it,I will love to have the link to the prospectus or simply a list of the issuing banks soon before I miss this opportunity.


THANKS

it's a good buy on a long term as d co. is d sole maker n supplier of bags to flour mills plc n UNICEM(flour mills' new cement co. of very high capacity dat is due 4 completn by 2008), though d prospectus says dat 75% of d proceeds will b used 2 service debt 4 completn by 2008).d co. is wholly owned by flour mills n d offer is underwritten 80% by zenith bank.dat gives u some confidence.

Na wa O The amount they want to pay for dividend is too low. Does not look too good based on this. However if they will be used for bagging cement this prospectus statement must be underestimate. Also them no quote their current asset in prospectus. Haba them dey hide something?

Fellow Nairaland experts,

Let us know the future profitability of Bagco

So that we prepare our mind on how to invest on it

dejacrue:

it's a good buy on a long term as d co. is d sole maker n supplier of bags to flour mills plc n UNICEM(flour mills' new cement co. of very high capacity that is due 4 completn by 2008), though d prospectus says that 75% of d proceeds will b used 2 service debt 4 completn by 2008).d co. is wholly owned by flour mills n d offer is underwritten 80% by zenith bank.that gives u some confidence.

the fact that any offer is 80% underwritten by any business entity is not supposed to give u any confidence!!! it is just a regulatory requirement by SEC & NSE gor all offers in nigeria.

the only implication of the under-writing is that bagco is sure of getting that 80% of the amount they are asking for even if no single person buys the shares.

the fact that zenith is underwriting is not also an implication that Jim Ovia thinks bagco is a business he wants to get involved with, it is just a subsidiary of the zenith group doing their own business and i can assure you, they have negotiated their reward for putting the zenith name on that offer!!!

so if u base your decision to buy on the 80% underwriting, you are off by a very long shot if the fundamentals are wrong

Is anyone still receiving dividends from this BAGCO shares? How far with it? Is it still on? Cos since 2007, it's only once I received dividend