Quote:
Originally Posted by Apache
@polosco,
Issuing house is very important bcos these are the guys that are going to see to it that all the hurdles are crossed for the comapny to meet the listing requirements for the stocks to be listed on the exchange. It also gives a level of credibility to the offer.
That one of the reasons Cashcraft and Union diagnostics are having issues bcos Cashcraft is not experienced as an issuing house. Also, you will notice that most of the PPs handled by IBTC are usually juicy bcos IBTC are selective in the PPs they package.
Summary, Issuing house is very important. Infact, it was one of the reasons i didn't subscribe to the Union diagnostics stuff. Don't want to be involved with anything concerning cashcraft.
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I agree with you that an issuing house packaging a PP is important but if we are waiting for PP packaged by these big names, i assure you, we cant buy anything. even if we buy, you will find out the oversubscription problem will be there and money returned. one of the reasons union diagonistic did not return money was because cashcraft was still trying to create a name (CREDIBILITY) for themselves. (APART FROM THE FACT THAT THE COMPANY NEED THE MONEY FOR EXPANSION) i believe if it was one of these big names that packaged the union diagonistic PP, one of two things would have happened. 1-- only thier people will have full in-house allotment ----ask IBTC what they did with REDSTAR. 2--there is a 80-90% chance that money will be returned----ask PARTNERSHIP, why they decided to give to about 872 subcribers 100% allotment when the PP was still open just becuase they bought directly from them. I know people that bought that PP outside lagos because it was packaged by UBA GLOBAL, FBN & ESL (BIG NAMES). i wonder what thier fate is since they didnt buy directly. so my point is this : in as much as the issuing house is important, we should not shy away from the NEW ISSUING HOUSES because by my projection there will be many new issuing houses that will spring up after this ongoing recapitalisation. many of them without credibility or experience so some people wont buy PP packaged by them. But i assure you, that is where you can & will make a killing. Because the man with experience & credibility today was not born with it, it took that man time. so when this new issuing house comes to the market again, EVERYBODY wants to patronize them.(THAT IS HOW UBA GLOBAL, FBN & ESL & THE OTHER BIG BOYS GOT THIER CREDIBILITY).