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EXPOLANKA HOLDINGS PLC (EXPO.N0000)

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251EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 4:18 pm

uditha9


Manager - Equity Analytics
Manager - Equity Analytics

milanka wrote:This is the interview the director of Expo lanka had with Reuters. I am including here for completeness.
http://www.ft.lk/2011/05/07/expolanka-ipo-adds-new-conglomerate-to-sri-lanka-bourse/

As for me I would consider buying Expo at the correct time but not thru the IPO due to obvious reasons. ( these were discussed in great detail in this forum previously)

agreed

252EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 4:25 pm

uditha9


Manager - Equity Analytics
Manager - Equity Analytics

uditha9 wrote:
milanka wrote:This is the interview the director of Expo lanka had with Reuters. I am including here for completeness.
http://www.ft.lk/2011/05/07/expolanka-ipo-adds-new-conglomerate-to-sri-lanka-bourse/

As for me I would consider buying Expo at the correct time but not thru the IPO due to obvious reasons. ( these were discussed in great detail in this forum previously)

agreed
agreed . whatever is said &done they sold shares to rich companies at 6 then asking poor retailers to pay14.i will buy expo from secondary market at 11/

253EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 4:41 pm

milanka


Vice President - Equity Analytics
Vice President - Equity Analytics

uditha9 wrote:whatever is said &done they sold shares to rich companies at 6 then asking poor retailers to pay14

@uditha9 , We have to look at it in this angle as pointed out by @smaalVille ,

uditha9 wrote:We're only suspicious abt the foolish mistakes directors 've done selling shares at 6 when the company was worth 14..



http://forum.srilankaequity.com/u188

254EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 6:07 pm

xhora


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

What about this scenario.

Big guys who brought at 6 dump their lot at 14..
this will say will bring down the price to say around 7~8.
They then buy back in to EXPO. Very Happy

that is not killing the golden hen but making it more fatter

255EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 6:32 pm

econ


Global Moderator

Why do we need to apply for this IPO with a substantial risk, if we think EXPO has a long term value?. we can buy it in secondary market. So I am not going to apply for the IPO.
I may buy in the secondary market.

256EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 7:00 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

We all talk about real values and artificial values, but how many stocks in the market which are reasonably valued.

Just look at shares like ALUF, PARAGON, WAPO etc.. Expo is not in that category. Expolanka standout from the rest with dedicated set of entrepreneurs, who had been working tirelessly for so many decades to develop the business.

If directors have purchased shares at Rs 6/= thats fine. They paid something for their shares. If they wanted they could have split the shares so many time prior to the issue and got themselves shares for Rs 0/=. Just like ODEL and few other companies did just prior to the IPO. How many Private placement have been there prior to a Public Issues Union Bank, Free Lanka, Valliable just to name a few.

Why only talk about Expolanka.

I think investors got to be more rational and less emotional when making investments.

"Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make."
Donald Trump



Last edited by Quibit on Sat May 07, 2011 7:03 pm; edited 1 time in total

257EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 7:02 pm

mark

mark
Expert
Expert

Quibit wrote:We all talk about real values and artificial values, but how many stocks in the market which are reasonably valued.

Just look at shares like ALUF, PARAGON, WAPO etc.. Expo is not in that category. Expolanka standout from the rest with dedicated set of entrepreneurs, who had been working tirelessly for so many decades to develop the business.

If directors have purchased shares at Rs 6/= thats fine. They paid something for their shares. If they wanted they could have split the shares so many time prior to the issue and got themselves shares for Rs 0/=. Just like ODEL and few other companies did just prior to the IPO. How many Private placement have been there prior to a Public Issues Union Bank, Free Lanka, Valliable just to name a few.

Why only talk about Expolanka.

I think investors got to be more rational and less emotional making investment

"Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make."
Donald Trump

now that's rational...........waited for such comment................. Very Happy Very Happy Very Happy Very Happy ,my first post on EXPO threads.............

258EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 7:06 pm

mark

mark
Expert
Expert

EXPO............

*Founded in 1978, Expolanka is Sri Lanka’s largest logistics company and has become a significant presence in Asia as well as in the Middle East and African regions. Apart from their core business in logistics over the years Expolanka has also branched into numerous related fields such as import/exports, manufacturing and other strategic investments

*ALLOCATION
Employees 15%
Retail Individual Investor 40%
Unit Trusts 10%
Non Retail Investors 35%

*Pre-IPO No. of Shares 1,782,915,000
Post-IPO No. of Shares 1,954,915,000
Number of Shares Issued 172,000,000
PERCENTAGE OF ISSUE-9%

*Out of the proceeds of the issue, the company will utilize Rs.908m to reduce longstanding debt. Rs.1 bn from the IPO proceeds will be used in easing working capital requirements which should provide a boost to revenue and Rs.500m will be used to enhance the existing warehouse capacity.

259EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 9:24 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Quibit wrote:We all talk about real values and artificial values, but how many stocks in the market which are reasonably valued.

Just look at shares like ALUF, PARAGON, WAPO etc.. Expo is not in that category. Expolanka standout from the rest with dedicated set of entrepreneurs, who had been working tirelessly for so many decades to develop the business.

If directors have purchased shares at Rs 6/= thats fine. They paid something for their shares. If they wanted they could have split the shares so many time prior to the issue and got themselves shares for Rs 0/=. Just like ODEL and few other companies did just prior to the IPO. How many Private placement have been there prior to a Public Issues Union Bank, Free Lanka, Valliable just to name a few.

Why only talk about Expolanka.

I think investors got to be more rational and less emotional when making investments.

"Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make."
Donald Trump

Hope your post is open to discussion.

Can you answer following question?

How many IPOs were there during last couple of years in which issue managers had purchased at a 133% or larger discount to IPO price just few months prior to the IPO?

260EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 9:45 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

If a company carries out a 10:1 Subdivision (Split) prior to an IPO it is similar to existing shareholders getting 1000% discount to the share price.

Just have a look at the ODEL IPO and Changes to the shareholding structure just prior to the IPO. Subdivision of 900:1

EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Odel10
Page 27 of the Prospects http://www.cse.lk/270808/pdf/odel_ipo_prospectus.pdf

The new Companies Act of 2007 allows many new methods for capital restructuring:
-Issue of equities for consideration other than money
-Subdivision and Consolidation of Shares
-Share Repurchase
-Revaluation of assets and subsequent capitalization
-Share Warrants

So there are so many ways to skin a cat. Private Placement is the most innocent and transparent method of these options.

261EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sat May 07, 2011 10:36 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Seems Issue Managers had no shares at the time of issuing the prospectus. In addition, the prospectus says they are not in a process of issuing some other shares. The problem here is getting issue managers part of the private placement.

To me, this more an ethical issue than financial.

Any professional should adhere to their own ethics (partly, that is why we call them professionals). When it comes to finance, the society expect higher ethical standards form a finance profession. The reason is investors (say retailers) believe financial adviser's expertise in taking investment decisions. So it is clear that these believes should not be misused. That is why qualified finance professionals must adhere to strict set of code of ethics and standards of practice. Those ethics clearly state advisers owe fiduciary duty to clients. That is, placing client’s interest before their own. Even they should avoid apparent (if not actual) conflicts of interest in the eyes of clients. As this helps to protect their goodwill.

Anyway, what we see here is okay if they are not professional, so that they may not have ethics to violate.
Someone can cheat somebody sometimes, not everybody every time.

This is my last comment on pre-IPO discussions of Expo.

262EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 1:45 pm

Rajitha

Rajitha
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Quibit wrote:If a company carries out a 10:1 Subdivision (Split) prior to an IPO it is similar to existing shareholders getting 1000% discount to the share price.

Just have a look at the ODEL IPO and Changes to the shareholding structure just prior to the IPO. Subdivision of 900:1

EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Odel10
Page 27 of the Prospects http://www.cse.lk/270808/pdf/odel_ipo_prospectus.pdf

The new Companies Act of 2007 allows many new methods for capital restructuring:
-Issue of equities for consideration other than money
-Subdivision and Consolidation of Shares
-Share Repurchase
-Revaluation of assets and subsequent capitalization
-Share Warrants

So there are so many ways to skin a cat. Private Placement is the most innocent and transparent method of these options.

Would you have been happy then ODEL issuing a IPO with share price over Rs 10000 ? Many companies do this because during huge time span the initial share price have risen to a substantial value mainly due to the appropriation of the rupees as well! Also companies share net asset value and its earnings would have increased a lot!

So NO ! A sub division prior to the listing and private placement only few months before for over 100% discount is not in the same ethics code!

263EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 2:46 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Rajitha wrote:
Quibit wrote:If a company carries out a 10:1 Subdivision (Split) prior to an IPO it is similar to existing shareholders getting 1000% discount to the share price.
So there are so many ways to skin a cat. Private Placement is the most innocent and transparent method of these options.

Would you have been happy then ODEL issuing a IPO with share price over Rs 10000 ? Many companies do this because during huge time span the initial share price have risen to a substantial value mainly due to the appropriation of the rupees as well! Also companies share net asset value and its earnings would have increased a lot!

So NO ! A sub division prior to the listing and private placement only few months before for over 100% discount is not in the same ethics code!

We all know that both Subdivisions and Private Placement of shares will ultimately affect the final value per share which will determine an IPO pricing. Hence I cannot comprehend Rajitha's final conclusion.

The key difference between the two options is that Private Placements infuse money to a company whereas Subdivision will result in increasing the number shares and shall not in anyway improve the financial position or the stated capital of a company.

Main factor that should be considered prior making an investment decision is to determine the real value of a company on the basis of an accepted valuation method. It is immaterial whether there was a private placement or subdivision happened prior to an IPO. Underlining fact is that a well planned subdivision of shares prior to an IPO could do more harm than a Private Placement of shares issued at a discount.

I have created a separate thraed for this subject. Therefore you guys could post your replies directly to that thread. The Link is as follows;
http://forum.srilankaequity.com/t3391-private-placements-vs-sub-division-of-shares-splits

I am looking forward for a more thoughtful reply from Rajitha!!

264EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 6:49 pm

million


Senior Equity Analytic
Senior Equity Analytic

much discussion going on on EXPO.i am too not going to buy any shares of EXPO but just to inform you guys i have heard from reliable sources that the IPO has been over subscribed by 4 times as of Friday.
again this was just to share the info i got and not promoting it by any means.

265EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 6:55 pm

saaj


Stock Trader

I heard the same. I am new to this thread but I do agree.. EXPOLANKA looks like its going nowhere but up!!! Smile

266EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 7:06 pm

tubal


Vice President - Equity Analytics
Vice President - Equity Analytics

My last word on this subject:

1) Read the expo lanka prospectus and read the errata even more closely.
2) consider whether you want to pay more than 2 twice as much as the 2 largest listed companies have paid for this share. (Dumb money always ends up in the hands of smart money)
3) look at the performance of UBC, HPFL, and more importantly FLCH
4) at what time is the shares likely to debut in the market.

267EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty EXPOLANKA IPO Sun May 08, 2011 7:10 pm

swarnasana


Manager - Equity Analytics
Manager - Equity Analytics

I changed my mind and decided to buy at the IPO. If trading prices are not good at the opening, I hope to keep it for some time.

268EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 7:12 pm

saaj


Stock Trader

they are expanding operations and growing rapidly. As stated above their sectors are vast and being labelled as one of Sri Lanka's main freight forwarding companies as well as a leading player in South Asia.
Think its's a subscribe for shares (amount withholding Razz) but due to the excess demand my broker could guarantee a certain number of shares less than what I wanted.

Hopefully I could gain a bit because of the demand but considering maybe for the mid to long term because of the projects they want to do in different sectors than they are in which is kind of exciting... Any suggestions??

269EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 7:18 pm

saaj


Stock Trader

Mate, by the sound of how things are going you may have to pay some major coin in order to obtain such shares. I expect it to perform well
There are talks that its been oversubscribed and there is already people talking abt it in this forum and the response looks good.

270EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 7:47 pm

saaj


Stock Trader

yup...its a win win situation i think...whether its short term or medium term, its a worthwhile investment. i think im gonna go for it...especially as this is a proper conglomerate in the same league as JKH and Aitken Spence, with a lot of diversification of the cards

271EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 9:49 pm

bart


Stock Trader

Word is going around that the shares are oversubscribed and was oversubscribed way for sometime now. We could expect a good showing on the first day of trading.

I feel happy for the company, very sound management that has been in the business for sometime from humble beginnings and basically shows everyone that anything is truly possible

272EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 9:57 pm

Leo_pold

Leo_pold
Manager - Equity Analytics
Manager - Equity Analytics

Expolanka may be a good company with a good future. But in this exact IPO it has made some grave mistakes. First of all it has sold shares in private offers at Rs. 6/- while going for a IPO rate of Rs. 14/- Then it has made some mistakes on the prospect note. The main buyer in the private offer is the same party that facilitates the IPO issue (JKH)

All these facts makes it one of the most controversial deals ever in CSE. But the controversy has it's own value about it. People don't talk about Britney Spears when she release a good song, but talk when she shaves her hair off. (There are few other examples of her which you may all know ) Very Happy

So it's all up to the markets to decide whether the price will move up or down. In the point of someone who bought shares for Rs. 6/- the best thing would be to unload them at 12 or so and once everybody runs away in panic, grab them back at a lower price, making a huge profit out of nothing.

In the sake of smaller investors, let's hope something better to happen..

273EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:00 pm

bart


Stock Trader

yeah seems so. A lot has been said about the demand of Expolanka shares but for a top official at JKH (Krishan Balendra) to stick his as well as the company's neck out there to state that they believe in the management and the future projects puts EXPOLANKA and their investors in great stead.

Great to see the management stick in there and strive the best. I see big things for my shares

274EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:03 pm

ipoguru


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Leo_pold wrote:Expolanka may be a good company with a good future. But in this exact IPO it has made some grave mistakes. First of all it has sold shares in private offers at Rs. 6/- while going for a IPO rate of Rs. 14/- Then it has made some mistakes on the prospect note. The main buyer in the private offer is the same party that facilitates the IPO issue (JKH)

All these facts makes it one of the most controversial deals ever in CSE. But the controversy has it's own value about it. People don't talk about Britney Spears when she release a good song, but talk when she shaves her hair off. (There are few other examples of her which you may all know ) :D

So it's all up to the markets to decide whether the price will move up or down. In the point of someone who bought shares for Rs. 6/- the best thing would be to unload them at 12 or so and once everybody runs away in panic, grab them back at a lower price, making a huge profit out of nothing.

In the sake of smaller investors, let's hope something better to happen..

Lets teach them a lesson.... Don't invest in Expolanka IPO there are many other options better than this crap

275EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:11 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

ipoguru wrote:
Lets teach them a lesson.... Don't invest in Expolanka IPO there are many other options better than this crap

Investors need to be more Rational than Emotional!!!

It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.
George Soros



Last edited by Quibit on Sun May 08, 2011 10:21 pm; edited 2 times in total

276EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:18 pm

bart


Stock Trader

hear hear!!!

277EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:23 pm

million


Senior Equity Analytic
Senior Equity Analytic

100 % agreed Quibit.



Last edited by million on Sun May 08, 2011 10:23 pm; edited 1 time in total (Reason for editing : spelling)

278EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:32 pm

ipoguru


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Quibit wrote:
ipoguru wrote:
Lets teach them a lesson.... Don't invest in Expolanka IPO there are many other options better than this crap

Investors need to be more Rational than Emotional!!!

It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.
George Soros

Its not being emotional... In other words Expolanka IPO will give you a loss so don't invest in it

279EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 10:36 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

I am very glad that we are having a good constructive discussion here. This is all what we need in a good investment forum. I am proud to be serving you guys!! Ipoguru is one of the greatest contributors to this site and I have learnt many things from him.

I do respect his opinion...

280EXPOLANKA HOLDINGS PLC (EXPO.N0000) - Page 11 Empty Re: EXPOLANKA HOLDINGS PLC (EXPO.N0000) Sun May 08, 2011 11:27 pm

FXX

FXX
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

im also not buying EXPO

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