Afromedia

[Abinishio]

L&G,
Just learnt Afromedia Advertising is doing a PP.
Price is N2.95/share.
It is being handled by BGL & Ecobank.
Details are still scanty, but will try to get the PP Memo by morrow.
Will keep all posted.
Everybody should tap in on their contacts to get more details.

Cheers,
Abini

[Abinishio]

Originally Posted by Abinishio

L&G,
Just learnt Afromedia Advertising is doing a PP.
Price is N2.95/share.
It is being handled by BGL & Ecobank.
Details are still scanty, but will try to get the PP Memo by morrow.
Will keep all posted.
Everybody should tap in on their contacts to get more details.

Cheers,
Abini

House,
See PP docs attached

[zainabusman]

Originally Posted by Abinishio

House,
See PP docs attached

At a glance this looks like a very expensive PP with a 2008 PE of 26.5. Lets dig further and see whether it is worth it.

[faoogoke]

Originally Posted by Abinishio

L&G,
Just learnt Afromedia Advertising is doing a PP.
Price is N2.95/share.
It is being handled by BGL & Ecobank.
Details are still scanty, but will try to get the PP Memo by morrow.
Will keep all posted.
Everybody should tap in on their contacts to get more details.

Cheers,
Abini

Good digging Abinishio!

[tonidol]

Originally Posted by faoogoke

Good digging Abinishio!

Guys, is PP @ N2.92 not too high for a coy of this pedigree. They claim in their propectus they will apply for listing immediately after allotment which is slated for June 2008.

I believe when they eventually get listed, they will be in the same sector with Daar. I will do a further research on this coy but the PP price seem expensive.

Anyone with indepth details on their future prospects?

[Ladi Jay]

Originally Posted by Abinishio

House,
See PP docs attached

CAN SOMEONE HELP. THE ATTACHMENT CANNOT BE DOWNLOADED.

MAY BE IT CAN BE ATTACHED IN ANOTHER FORMAT.

STILL WAITING.........................FOR HELP.

[Apache]

Originally Posted by Ladi Jay

CAN SOMEONE HELP. THE ATTACHMENT CANNOT BE DOWNLOADED.

MAY BE IT CAN BE ATTACHED IN ANOTHER FORMAT.

STILL WAITING.........................FOR HELP.

I have been able to download it. see if you have a pdf reader installed on your system cos if you don't, you won't be able to read it

[faoogoke]

Originally Posted by tonidol

Guys, is PP @ N2.92 not too high for a coy of this pedigree. They claim in their propectus they will apply for listing immediately after allotment which is slated for June 2008.

I believe when they eventually get listed, they will be in the same sector with Daar. I will do a further research on this coy but the PP price seem expensive.

Anyone with indepth details on their future prospects?

Once again it is important to remind us not be believe everything we read in a pp prospectus especially concerning time of listing. The claim that they will list immediately after allotment is pure deciet.

[Abinishio]

House,
Please can we have a critical review of the PP fundamentals.
My openion is that this is expensive.
More views welcome

Cheers

[andico26]

In my own opinion the pp is expensive at PE of about 26. But who knows whether they will utilise the money effectively for expansion.
For the information of the house, spoke to a director of afromedia yesterday and he said anyone buying the pp should not buy more than 500,000 units. I guess that is the maximum for allotment

[zainabusman]

Originally Posted by andico26

In my own opinion the pp is expensive at PE of about 26. But who knows whether they will utilise the money effectively for expansion.
For the information of the house, spoke to a director of afromedia yesterday and he said anyone buying the pp should not buy more than 500,000 units. I guess that is the maximum for allotment

Yes u are right about the 500,000 maximum. In mail i received from BGL they clearly indicated the maximum is 500,000 units. I am happy they are doing this instead of collecting peoples money and sitting on it. In addition, they ensure they keep control.

[BLUEMONEY]

the offer price is kind of expensive but i am buying this one to keep for the long term.

[creflo]

very expensive considerring the risks , i dont see the media sector to be that money spinning . i think high cost of operations and competition make this an expensive offer. I think its because Eco bank underwrote at a firm basis. I am sure Afromedia is getting N2.50k or less.

[hispy99]

Afromedia Nigeria Ltd Private Placement
Posted Monday, May 26, 2008

Proshare Blog » Private Placements

[bolajiedun2002]

does any one know how to get the afromedia private placement forms
i am deeply intersted

[hispy99]

Originally Posted by bolajiedun2002

does any one know how to get the afromedia private placement forms
i am deeply intersted

The docs were posted by Abinishio on the 5th. Check the posts above.

Good luck.

[solainvest]

BusinessDay... the voice of business - Return prospects of Afromedia Nig Limited

[billions]

The company has a good prospect since there are obviously loads of untapped potentials in the advertisment section of the media industry.

However,considering wat d pe ratio 4 already listed companies with very good past records are now saying in d market....this PP is not a good buy at d current price.

i will look at it twice if it was N1.50k but at almost N3.00 even if i look at it, i will not see it.

it is possible dat the company expects to make more profit dan wat was printed in d prospectus...maybe dey just want to scare guys away.

Thank you.

[hispy99]

Originally Posted by solainvest

BusinessDay... the voice of business - Return prospects of Afromedia Nig Limited

Almost every stock (except the company goes kaput) will experience price appreciation in the long term. Find me a stock that has not gone up in price in the last 30 years . Compared to other opportunities available in the secondary market (quite a number of stocks with current PE below 20 right now, compared to Afromedia's projected PE of 26 in 2008), I will let this one pass...

[Coolhead]

I have a bit of a concern about this Afromedia PP, not necessarily on the PE of 26, or the offer price. I'm actually worried about some soft issues that could easily be glossed over.

1) How come Ecobank is underwriting 60% on a firm basis and at the same time selling that 60% off by way of an Offer fo Sale in the same placement exercise? That's a very strange arrangement, isn't it? Simply put, it appears there is no underwriting. My take is that Afromedia was indebted to Ecobank, which probably became a bad debt and a debt conversion arrangement was hastily made, preparatory to packaging a private placement - effectively pushing the bad debt to the public.

2) Utilization of funds is stated only in percentages, without the real figures accompanying them. Investors have to work the figures out, don't they? Another strange and unusual practice, I think.

So I don't start to think these are deliberate acts of deceit, I'd appreciate a discussion on these issues.