Beware of overvalued IPOs - People's leasing company

dineshfernando · 1 Beware of overvalued IPOs - People's leasing company Wed Sep 28, 2011 11:27 pm

dineshfernando

Senior Manager - Equity Analytics

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Dear friends, just a small piece of kind advice to all since we have seen enough crying in the recent days.

Please be careful with IPOs as the market is dying without funds. You would almost certainly be able to buy People's leasing in the open market much less than the IPO price. Eg: SHL, FLCH, BIL, etc..etc..

Also note that this is a very big IPO (Rupees 7Bn) which will suck and drain out the market liquidity and as a resuly you will be seeing a dull market for a very prolonged period.

Therefore, don't rush to buy this on IPO and focus on other fundamentally undervalued shares. Still we don't know whether it's overvalued or undervalued but it will be trading less than the issue price due to the volume, selling pressure, inadequate funds in the market and negative market sentiment.

This is not a recommendation and it's my personal opinion.

zen

zen

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Agreed that we would surely be able to buy @ less than the IPO price. It would be good in the long term.

Nalin

Nalin

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As per my knowledge, Softlogic and other failed IPOs had something in common ...

Private Placements

But brokers say that PLC will NOT do the same mistake. So imho, PLC share price wont crash.

Nalin · 4 390,000,000 of shares priced at Rs. 18 Tue Oct 04, 2011 2:50 pm

Nalin

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Reuters and LBO stating that PLC IPO is for 390 million shares priced at Rs. 18.00 per share.

I think that's a pretty good price Smile

tkc

tkc

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BIL was fairly valued according to my knowledge. But it couldn't perform well since IPO.

econ

econ

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this one is another massive failure for sure. too many shares..

yellow knife

yellow knife

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If u want to win think differently...as strategic guru suntzu says...if many wait to buy at post ipo below IPO price ....then subscribe IPO....that will give the advantage over othrs...PLC IPO will be a good buy in the market since the price is attractive...

yasiru

yasiru

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does any one didnt refer the prospect????
i got few points,
2011/3/31
1.net asset value per ordinary share is 146.65
2.earnings per share is 47.97
3.dividend per share 1.5,

2011/june/30
1.eps 1.44
2.navps 7.74
please refer 105-155 pages in prospect for company account details

pp
impotent note is the done pp in few years go,but dnt wry,they done capitalisation of reserves in 2011 june 30,@146 per share,they issued 28000000 share @ 146/-,
but worst thing is they done sud division shares in june 30,2011.preparation is 1 exiting share into 15,so 146/15=9.73 rupees per share.
but dnt wrry,according to law they have to hold it for 1 yr,so short term ok,but think twice for long term,becos,when pp shares(117000120) come to the market share price will go down,it sure,
please refer page 72 in prospect for pp

remember high risk,high profit

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Beware of overvalued IPOs - People's leasing company

1 Beware of overvalued IPOs - People's leasing company Wed Sep 28, 2011 11:27 pm

dineshfernando

2 Re: Beware of overvalued IPOs - People's leasing company Thu Sep 29, 2011 3:16 pm

zen

3 Re: Beware of overvalued IPOs - People's leasing company Sat Oct 01, 2011 10:35 am

Nalin

4 390,000,000 of shares priced at Rs. 18 Tue Oct 04, 2011 2:50 pm

Nalin

5 Re: Beware of overvalued IPOs - People's leasing company Tue Oct 04, 2011 3:04 pm

tkc

6 Re: Beware of overvalued IPOs - People's leasing company Tue Oct 04, 2011 3:20 pm

econ

7 Re: Beware of overvalued IPOs - People's leasing company Wed Oct 12, 2011 12:58 pm

yellow knife

8 Re: Beware of overvalued IPOs - People's leasing company Wed Oct 12, 2011 10:00 pm

yasiru

9 Re: Beware of overvalued IPOs - People's leasing company

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