Nahco

[wanaj0]

saw a snapshot and personally, I will let it pass. Only attraction is that teh quantity being offered is small hence there will still be scarcity of the stock. Considering the PE and the earnings growth, it is not attractive. They talked about expanding into the West African subregion.

One thing is becoming clear, offers made during a bullish market tend to be over valued. That's what is playing out here. 5.50 stock in 2005, now selling for 17.50 even after doing a 3:2 bonus! How much increase in business have they had.

Well, will just pick up my rights (7 for 150!!!) and pass!

My Nigerian German and Flour Mills will do better.

[wanaj0]

Originally Posted by bwalaman

NAHCO today represents a buy opportunity- but again it is a matter of perspective. Over priced? Checking the Nigerian Stock on Bloomberg, and the whole market seems overpriced. So, I don’t know – about how relevant some of the fundamentals are, especially when gauged against the Nigerian Factor (whatever this means).

On the issue of Bonus, NAHCO technically did not give a bonus. It was technically a stock split 3 – 2. So we ended up with more shares for the same value. In the process of the stock split, NAHCO also increased total shares (including the split volume) – it is part of this increase that will be offered to the public.

Personally I am not too worried about NAHCO, the foreign interest alone will ensure that the excess shares after “IPO” will be moped up. Not to talk about corporate governance issues and the fact that NAHCO is the sub-sector in this field. NAHCO does not need to muscle anyone out of this sub-sector.

Do not forget that it went from 5.5 – 70 naira, pre split. And the current share value adjusted for pre split value will put it in the mid 60 naira range. Remember it was split from mid 60 naira – 26 naira.

I think NAHCO at current price represents a buy opportunity. It has yo-yoed post split, but never dipped below 26. Of course it not going to go up as fast as it did again, no stock has "1000%" growth cycles back to back in 1-3 years. Buy and hold!!!

Think again folks...

Not sure what you meant by the bolded portion. NAHCO declared a bonus of 3 for every 2 that you have. They also increased the authorised share capital to accommodate the new bonus shares and also the new shares to be offered (Public Offer and Rights Issue).

It is not a stock split because you still have 50k shares unlike when you have a N1.00 share and you do a stock split thus to 50k share.

In a bonus, the paid up capital increases, the number of shares outstanding increases while the market capitalisation remain the same due to the price adjustment.

For a split, the paid up capital remain the same, the number of outstanding shares increases but the market capitalisation remain the same.

[balaliyu]

hey wanaj0, wasnt it N5.50 late 2006 rather than 2005.

It just dont seem right to get in now...if one had already missed the 1000%+ appreciation other folks have gotten....I personally think we will see lower prices than the offer price, next year post this offer...when everyone has gotten their bonuses, plus the new rights and public offer....

[alanbow]

Links to prospectus and form

http://www.zenithsecuritiesng.com/ad...Prospectus.pdf

http://www.zenithsecuritiesng.com/ad...nahco_form.pdf

[Apache]

for all you NAHCo lovers. Here's something to chew on

[Survival2006]

Nahco yesterday went on bid. Hardly can be found now in the secondary market. I believe there are still a few folks there who believe Nahco will peak at its last high. In Nigeria, a few stocks there are that still thrive 60% more on sentiments than on established fundamentals.

[bwalaman]

Or not?

I am a NAHCO believer- for those that have followed my posting on this one... Interested in what you think, know and have analyzed...

[pumping]

Originally Posted by bwalaman

Or not?

I am a NAHCO believer- for those that have followed my posting on this one... Interested in what you think, know and have analyzed...

The current bear market is no respecter of cows..

Nahco lost marginally today by 1 kobo but it went as low as NGN 21.67.

I know this does not tell us anything so we'll wait and see. A lot will depend on the next result.

[bwalaman]

ThisDay
Improving Passenger, Cargo Handling in Nigeria
By Chinedu Eze, 11.08.2007

Nigerians and foreigners who travel through the Murtala Muhammed International Airport, Lagos (MMA) are always distraught due to undue delays. They wait most times for hours for the luggage to come. And that is after they have spent a long time going through security, Immigration and Customs. The delays are caused in most part by obsolete and poor handling facilities at the airport, including the conveyor belts, slow process of checking and poor infrastructure which should have been expanded over the years.
Mr. Bates Sarki Sule, the managing director and chief executive of Nigeria Aviation Handling Company PLC (NAHCO) recently appraised the issue in the paper he presented recently at aviation conference in Abuja, titled "The Future of Passenger and Cargo Handling in Nigeria".

THISDAY ONLINE

[Apache]

We write to inform all investors in the NAHCo Public offer that the allotment results for NAHCo Offer wll be published on Monday in The Guardian, Personal Finance News and Analysis, Features, and Tools and on the company's website.

[Apache]

The Securities and Exchange Commission (SEC) has approved the basis of allotment of the hybrid offer of the Nigerian Aviation Handling Company PLC (NAHCo). 64,753 applications for 615,616,395 ordinary shares were received in respect of the Public Offer. 580 applications for 5,051,184 ordinary shares that did not comply with the terms of the Offer were rejected; 4,611 ordinary shares arising from wrong multiples were also rejected; 64,173 ordinary shares found to be valid, were accepted and processed accordingly. The Offer was therefore 678.40% subscribed.
Of the 64,173 valid applications, 860 applications for 24,932,900 ordinary shares were in respect of the Preferential Allotment, provided for in the Prospectus. 63,313 valid applications from the general public for 585,627,700 ordinary shares were allotted 65,067,100 ordinary shares remaining after the Preferential Allotment.
For the rights issue, 6,407 shareholders/applicants with provisional allotment of 25,140,027 ordinary shares applied for 61,423,465 ordinary shares in respect of the Rights Issue; All the acceptances received were found to be valid under the terms of the Issue, accepted and processed accordingly. The Rights Issue was therefore 175% subscribed.
The breakdown of the allotment is as follows: A total of 2,109 shareholders with a Provisional Allotment of 5,799,918 ordinary shares accepted their rights in full; five shareholders with Provisional Allotments of 49,779 ordinary shares accepted only 14,481 ordinary shares, hereby partially renouncing 35,298 ordinary shares; 3 shareholders with Provisional Allotment of 14,000,000 traded their Rights fully on the floor of The Nigerian Stock Exchange.
A total of 9,859,973 ordinary shares were fully renounced. This brings the total renunciation to 9,895,271 ordinary shares; 4,290 shareholders with provisional allotment of 5,290,330 ordinary shares accepted their rights in full, and requested for an additional 36,318,736 ordinary shares;
The Securities & Exchange Commission has cleared the basis of allotment proposed above as well as this announcement. Cheques for rejected/surplus application monies and accrued interest will be returned to the affected applicants by the Registrars to the Issue, City Securities (Registrars) Limited, Primrose Tower, 2nd floor, 17A, Tinubu Street, Lagos, not later than Wednesday, 23rd January, 2008.
Share Certificates in the name of successful allotees will be dispatched through their given addresses by registered post, or units of NAHCo will be credited to the CSCS accounts of shareholders who indicate this on their acceptances/renunciation forms, by the Registrars not later than 6th February, 2008
It will be recalled that NAHCo went to the Capital Market to shop for N2billion in September 2007. NAHCo offered 90million Ordinary Shares of 50k each at N17.50 per share through a Public Offer. The Company also simultaneously offered by way of rights 35million Ordinary shares of 50k each at N16.50k per share to existing shareholders as at 18th May, 2007.
Proceeds from the combined Offer, estimated at N2,002,590,465.00, after deducting the costs of the issue, will be used to fund the Company’s business growth and expansion strategy, which includes acquiring new Ground Support Equipments (GSEs), reinforcing the company’s technology platform, construction of new cargo sheds, re-branding, and increasing the working capital to support the expected expansion. About 49.56% of the net proceeds of the offer will be committed to the purchase of equipments which are critical to NAHCo’s operations.

[Dragon123]

I have read this so called allotment release by NAHCO over and over again and nowhere did I get to know the percentage allocation by number of shares applied for. Can anyone please let us know the percentages of allocation as a function of the number of shares applied for in the last NAHCO public offer. All this dancing around the point is not what we want please. ACCESS did the same thing in their last PO too.

[newton]

I concur wt u 100%.

They shd ave us d story. Just give us the allotment table like Dangote Flour n we can all compute our allocation.

[Dragon123]

The NAHCO bad news is out at last! See todays Guardian Newspaper Pages 68 and 69. It is worse than anything I have seen! Only those who asked for 1000 units got 100% allocation. As for me it is bye bye to public offers.

[hispy99]

Originally Posted by Dragon123

The NAHCO bad news is out at last! See todays Guardian Newspaper Pages 68 and 69. It is worse than anything I have seen! Only those who asked for 1000 units got 100% allocation. As for me it is bye bye to public offers.

For those of us in the diaspora, can you please post the allocation schedule here? thx

[Apache]

Originally Posted by Dragon123

The NAHCO bad news is out at last! See todays Guardian Newspaper Pages 68 and 69. It is worse than anything I have seen! Only those who asked for 1000 units got 100% allocation. As for me it is bye bye to public offers.

Guys, the approach i want to adopt to these offers is to buy into the company once they have made their intention known about raising funds. I will experiment this strategy with Crusader Insurance and see how it works. Then, i might extend it to other stocks.
Just too bad about this Nahco and i am fed up. I am already placing my order for Crusader in preparation for their PO. (See thread on Crusader)