Softlogic the Angel... Expo the Devil.... ( Story of Private Placements )

nilantha · 1 Softlogic prospectus Sat Jun 04, 2011 8:37 am

nilantha

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i went through softlogic prospectus and i want to clear followings
EPS difference
As per page 131 3.08
As per page 89 0.25 for the same year why that

further prospectus says
The IPO proceeds will reduce the debt incurred on investment ( page 6 )
Accoding to their balance sheet investment made during 31/03/2010 to 31/12/2010 is 732,971,508
(difference of closing balance of investment in associate)
and they are going to retire loan taken for this period ( page 6)
Seylan bank 250,000,000
HNB 1,204,000,000
(Page120)
Accordingly they have taken loan from above 2 banks Rs 1454,000,000 during first 9 month but during this period investment's in associate increase only 732,000,000 then how the utilized excess amount t.e (1454-732 )
need help from experts, im new comer to the this

investor1984

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We so lot of criticism on Expo due to their favorable treatment on Private placement. They came up with the IPO @ 14 & their private placement price was 6. Their was a premium of 8 rupees which is a premium of 133%. Lot of investors gave this reason as the sole reason for not applying for the Expo IPO.

Then came Softlogic, IPO priced at Rs 29. Private placement done @ Rs 72. Well not bad hah... Well but they went for a sub division of 1 in to 10 shares, which in the means the private placement was at Rs7.20. So the premium now we are to pay is Rs 21.80, percentage wise 303%.. yet every one is soooooo much infavour of Softlogic.. whats the reason???? How can Expo only be the DEVIL???? And Softlogic turn out to be an Angel???????

duke

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as far as I can see I don't think anybody said anything good about softlogic pricing method.
see http://forum.srilankaequity.com/t4117-softlogic-ipo

TuskerLK

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I was positive on Expo and went for the IPO,despite the fact that PP would give 133% gain at IPO issue price. However Soft seems to be more riskier than Expo due to facts, extreme premium for private placement shares and 300% gearing.

So I decided to stay away from this IPO.

I saw someone saying that Soft gonna be a celebrity share like odel and gonna trade above 40, but I don't think so.

JennyFunny

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Just so you know..Expo shares were trading at Rs45 in the grey market just before the IPO opening date.This is shares which were issued through the private placement..

*not a buy recommendation

Happy Trading

TuskerLK

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SanjivFund wrote:Just so you know..Expo shares were trading at Rs45 in the grey market just before the IPO opening date.This is shares which were issued through the private placement..

*not a buy recommendation

Happy Trading

Sanjiv,

To my knowledge Expo reached 28/- max in the gray market. The issue price is only 14, which means those who bought the shares in gray market at higher prices will not dump the shares at loss or little profit.

But on the otherside, even though Soft was traded in gray for about one year, it never reached 290/- or 29/-post split.

I expect two different market reaction on these two shares (on day one trading).

factFINDER

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investor1984 wrote: Expo.....came up with the IPO @ 14 & their private placement price was 6. Their was a premium of 8 rupees which is a premium of 133%. ............

Softlogic, IPO priced at Rs 29. Private placement done @ Rs 72. ..>>.. at Rs7.20. So the premium now we are to pay is Rs 21.80, percentage wise 303%.. ............

Well ... the next IPO will be VELLIBEL ONE ... can somebody give us a comparison of PP price with IPO price of Rs. 25/-.

insidertrader

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factFINDER wrote:
Well ... the next IPO will be VELLIBEL ONE ... can somebody give us a comparison of PP price with IPO price of Rs. 25/-.

The private placement has been at 25 too.

http://www.ft.lk/2011/01/18/vallibel-one-private-placement-draws-rs-7-5-b-demand/

TuskerLK

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Yes, both VOL and browns investment have done their PP at same price as their IPO,which is more fair. What my thinking is even big guys may prefer to put their cash in those two,leaving Soft a Hard time.

factFINDER

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tinyman wrote:Yes, both VOL and browns investment have done their PP at same price as their IPO,which is more fair. What my thinking is even big guys may prefer to put their cash in those two,leaving Soft a Hard time.

I'm possitive on VOL & Browns Inv, ..as they are giving "level playing field" retailers!! Very Happy

But, we have to make sure whether they have done "splitting" or "bonus" "rights" at lesser prices after PP...

gamaya

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Just be careful what you are asking for.
Because probably you would get it.

econ

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We retailers should avoid Softlogic. They try to fool retailers by giving shares to their friends at 7 in the PP, and now giving us at 29 in the IPO.
Vallibelone and Browns investments are fair in the case of PP. Private placement and ipo are same price of 25 for vallibelone and 5 for Browns investments.

milanka

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gamaya wrote:Just be careful what you are asking for.
Because probably you would get it.

Because probably you would get 100% of it

uanuradha

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Transferor : Bartleet Finance Ltd.
Transferee : Strategic Insurance Brokers (Pvt) Ltd.
No. of shares transferred : 3,500,000
Consideration : Rs. 84,000,000
@ 24/=
so, what will happen?

uditha9

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investor1984 wrote: We so lot of criticism on Expo due to their favorable treatment on Private placement. They came up with the IPO @ 14 & their private placement price was 6. Their was a premium of 8 rupees which is a premium of 133%. Lot of investors gave this reason as the sole reason for not applying for the Expo IPO.

Then came Softlogic, IPO priced at Rs 29. Private placement done @ Rs 72. Well not bad hah... Well but they went for a sub division of 1 in to 10 shares, which in the means the private placement was at Rs7.20. So the premium now we are to pay is Rs 21.80, percentage wise 303%.. yet every one is soooooo much infavour of Softlogic.. whats the reason???? How can Expo only be the DEVIL???? And Softlogic turn out to be an Angel???????

the thing is during that period eps has gone up dramatically

mark

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guys,just don't change your mind because of someone's negative or positive attitude towards any IPO,just take your own decision by your self........
if you want to go for IPO,go for it,take the risk.....
always consider the company's future,don't much consider about it's past failures and insider dealings....
finally you will be a winner or a looser,and you will learn.......

Last edited by mark on Tue Jun 07, 2011 2:15 pm; edited 1 time in total

nadun_nevermore

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so then lets jump to softlogic together as one.. even though they having black marks in the past bounce

Futurebillionaire

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What mark said was correct we should make up our own minds and not base our decisions on what others say. Always remember that people who take risks are those who can get rewarded. Every entrepreneur takes risks and that is how they get rewarded . That is the basic way things work.I think Softlogic is a great IPO,something we should not miss.I have never seen a company that is more dynamic and visionary than softlogic. This may be a company that is going to be a one of the largest companies in the country. No matter what you all say I will not back out of this IPO. Everyone who does not invest in this IPO,may regret in someday.
this is my opinion.

Last edited by mark on Wed Jun 08, 2011 4:14 pm; edited 2 times in total (Reason for editing : edited accordingly to remove bias quotes)

smallville

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econ wrote:We retailers should avoid Softlogic. They try to fool retailers by giving shares to their friends at 7 in the PP, and now giving us at 29 in the IPO.
Vallibelone and Browns investments are fair in the case of PP. Private placement and ipo are same price of 25 for vallibelone and 5 for Browns investments.

Well.. Econ has a point.. But u guys have to decide what u gonna do Wink

Despite the fact this is high priced, there can be a good movements in prices once trading starts due to good investor sentiments about the company but we also have to be aware that the selling pressure will be huge thanks to low priced PP.. A lot of ppl may be looking to book abt a 400% gain on this..So eventually this may rise then if you're not hurry enuf, u may be having less profit Wink

Frankly I'll be watching the secondary market drama o the trading day of EXPO to decide the fate of these ill treated PPs.. if Expo succeeds, we know that ppl are generally bullish abt IPOs and not abt the way they've been treated..

factFINDER

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Can someone reconfirm excect dates of the PP held and whether PP-SOFTLOGIC subject to Lock-In period as per the recent SEC guideline???

Gaja

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factFINDER wrote:Can someone reconfirm excect dates of the PP held and whether PP-SOFTLOGIC subject to Lock-In period as per the recent SEC guideline???

if i am not mistaken look in period will be applicable to the shares allocated after 01.04.2011, and if this is right not applicable for Softlogic

factFINDER

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Gaja wrote:

factFINDER wrote:Can someone reconfirm excect dates of the PP held and whether PP-SOFTLOGIC subject to Lock-In period as per the recent SEC guideline???

if i am not mistaken look in period will be applicable to the shares allocated after 01.04.2011, and if this is right not applicable for Softlogic

Thanks Gaja ... not even a silverline in this dark cloud

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Softlogic the Angel... Expo the Devil.... ( Story of Private Placements )

1 Softlogic prospectus Sat Jun 04, 2011 8:37 am

nilantha

2 Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 5:30 pm

investor1984

3 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 5:36 pm

duke

4 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 6:27 pm

TuskerLK

5 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 6:41 pm

JennyFunny

6 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 6:52 pm

TuskerLK

7 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 7:24 pm

factFINDER

8 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 7:28 pm

insidertrader

9 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 8:07 pm

TuskerLK

10 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 8:14 pm

factFINDER

11 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Sun Jun 05, 2011 9:55 pm

gamaya

12 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Mon Jun 06, 2011 3:22 am

econ

13 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Mon Jun 06, 2011 8:09 am

milanka

14 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Tue Jun 07, 2011 1:06 am

uanuradha

15 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Tue Jun 07, 2011 11:53 am

uditha9

16 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Tue Jun 07, 2011 12:23 pm

mark

17 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Tue Jun 07, 2011 12:55 pm

nadun_nevermore

18 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Wed Jun 08, 2011 3:05 pm

Futurebillionaire

19 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Wed Jun 08, 2011 6:12 pm

smallville

20 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Wed Jun 08, 2011 7:26 pm

factFINDER

21 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Wed Jun 08, 2011 7:33 pm

Gaja

22 Re: Softlogic the Angel... Expo the Devil.... ( Story of Private Placements ) Wed Jun 08, 2011 7:55 pm

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