Daar Communications Plc (AIT)

[crtide]

Originally Posted by newton

But lets get a hold of the prospectus or betterstill prior year financials to be certain of the valuation.

Though, beyond the fundamentals, its certain this wd be oversuscribed goin by recent trends in the market

From this, it seems it will be an IPO in which case, the prospectus will be all over the usual places. All we have to do now is wait for it to commence

[newton]

Yeah it a combination of an IPO (Daar Comms) and an offer 4 sale (Daar Investmt selling some of its holdings). Ordinarily the offer 4 sale shd be more attractive.

[nezvest]

What is the difference b/w the Po and offer for sale? Pls explain Newton.

[panasharp]

I really would love to the the prospectus for this offer be it IPO or offer for sale.

If the Daar Comm. piece is what would be available for IPO that converts into approximately $78M. I am not sure how much upgrade can be done with that amount of funds considering that Daar Comm. has AIT radio and TV and the AIT International under its umbrella. If the objective is to make AIT International on par with likes of CNN, AIT has a long way to go. Who knows maybe they generate more cashflow than one perceives.

Prospectus pleazzzzzzzzzzzz!

[newton]

In an IPO - new shares are created and issued to the public, as such intending buyers might not be entitled to div at year end dependin on wat was specified in the rpospectus.


In an offer 4 sale - a shareholder (usually major investor) divest some of their holding to interested parties e.g Dangote sugar. Here u'r entitled to div declared at year end even if u bought the shares just then (eg dangote sugar offer was at year end yet ppl got div declared)

[olusolakemmy]

Originally Posted by nezvest

What is the difference b/w the Po and offer for sale? Pls explain Newton.

PO is public offer, means the company is selling new issue, i.e adding or increasing the share volume but offer for sale is like the company is selling some of their holding, in this case, it is not new issue, but an existing issue but just change of ownership, e.g dokpesi as a person decide to sell 10% of his personal holding.
offer for sale doesnt increase the share volume of a company but public offer does.
i really dont know the advantage of one to another as it concerned an average investor like you and me, but i think i will prefer offer for sale because it doesnt increase the volume of shares available.

[riskreturn]

Originally Posted by olusolakemmy

PO is public offer, means the company is selling new issue, i.e adding or increasing the share volume but offer for sale is like the company is selling some of their holding, in this case, it is not new issue, but an existing issue but just change of ownership, e.g dokpesi as a person decide to sell 10% of his personal holding.
offer for sale doesnt increase the share volume of a company but public offer does.
i really dont know the advantage of one to another as it concerned an average investor like you and me, but i think i will prefer offer for sale because it doesnt increase the volume of shares available.

The central advantage of Offer for Sale is that, since no new funds would be coming to the company, the investors or subcribers for the shares would not have to wait for new funding to be invested and contribute to profit. In short, it does not lead to dilution of shares without an immediate corresponding contribution to profit. Except for the delay in issuing share certificate, it is like buying shares from the secondary market. However, the issuers might have priced this advantage into the offer price, making it more richly priced (i.e., higher P/E ratio that is almost as high as what prevails in the secondary market for shares of comparable quoted companies). In addition, the scope for absorption of excess subscription is constarined or even absent as the proprietor divesting his shareholding may not be willing to divest more than the initially intended percentage - as in the case of Dangote's POs.

[tonyawo]

L&G,

This is to inform you all that the IPO of Daar Communications Plc. opens on Monday, February 25 - Monday, March, 31, 2008.

Source: Live broadcast of Daar Comm. Plc Completion Board Meeting on AIT at 7pm today.

[olusolakemmy]

Originally Posted by tonyawo

L&G,

This is to inform you all that the IPO of Daar Communications Plc. opens on Monday, February 25 - Monday, March, 31, 2008.

Source: Live broadcast of Daar Comm. Plc Completion Board Meeting on AIT at 7pm today.

whats the offering price???????????????

[5959olu]

The price is 5 naira per unit share

[olusolakemmy]

Originally Posted by 5959olu

The price is 5 naira per unit share

thanks, i forgot i read it somewhere sometime before now. so we need the prospectus to know if the N5 is justofy

[newton]

DAAR Communications proposes 50k dividend in 2010
Posted Thursday, February 21, 2008
Broadcast giants DAAR Communications Plc, owners of radio station Ray Power 100.5 Frequency Modulation (FM) and African Independent Television (AIT) has proposed a 50 Kobo dividend for investors in 2010. This was contained in a financial document made available to Proshare News/Investigations at the end of the company’s Completion Board Meeting held in Lagos.



DAAR Communications is approaching the market to raise fresh funds through a hybrid offering of Initial Public Offering (IPO) by way of an offer for subscription of 1.829 million and DAAR Investment Holding Company Limited offer for sale of 960 million ordinary shares of 50 Kobo each at N5.00 per share respectively.



In the same vein, the company is also proposing to offer investors 31 Kobo and 38 Kobo in 2008 and 2009 respectively.



These forecast dividend per share for the years ending 31st December, 2008, 2009 and 2010 are based on the 8 million ordinary shares of 50 Kobo each expected to be in issue as at the respective dates.



The company is projecting a Gross Earning Income of N8.5 billion, N11.2 billion and N14.2 billion for the years ending 31st December, 2008, 2009 and 2010 respectively.



While Profit after Tax (PAT) is expected to grow from N3.2 billion in 2008 to N5.7 billion in 2010 representing a 79 percent growth. Projected Profit before Tax (PBT) of DAAR Communications is also expected to rise from N5.8 billion in 2008 to N9.1 billion in 2010 indicating a rise of 56 percent.



However, historical financials summary of the company also made available to Proshare News/Investigations showed that PBT dropped from N335.2 million in 2002 to N223.7 million in 2007 indicating 33 percent decrease. While PAT also dropped from N349.7 million in 2002 to N223.7 million in 2007 indicating a decrease of 30 percent.



Lead Issuing Houses to the hybrid offering include BGL Securities Limited, Skye Bank Plc and Fidelity Bank Plc. While joint issuing houses are Wema Asset Management Limited, First Inland Bank Plc, Platinum Bank Plc and Spring Capital Markets Limited.



Others are Ecobank Nigeria Plc, Greenwich Trust Limited and Northbridge Investment and Trust Limited.



As at the time of filling in this report, without prejudice to our analyst review of the historical financial summary of the company, Proshare News/Investigations have not done proper analysis of these financials in respect of the DAAR Communications hybrid offering.

[ikpong]

Originally Posted by newton

DAAR Communications proposes 50k dividend in 2010
Posted Thursday, February 21, 2008
Broadcast giants DAAR Communications Plc, owners of radio station Ray Power 100.5 Frequency Modulation (FM) and African Independent Television (AIT) has proposed a 50 Kobo dividend for investors in 2010. This was contained in a financial document made available to Proshare News/Investigations at the end of the company’s Completion Board Meeting held in Lagos.



DAAR Communications is approaching the market to raise fresh funds through a hybrid offering of Initial Public Offering (IPO) by way of an offer for subscription of 1.829 million and DAAR Investment Holding Company Limited offer for sale of 960 million ordinary shares of 50 Kobo each at N5.00 per share respectively.



In the same vein, the company is also proposing to offer investors 31 Kobo and 38 Kobo in 2008 and 2009 respectively.



These forecast dividend per share for the years ending 31st December, 2008, 2009 and 2010 are based on the 8 million ordinary shares of 50 Kobo each expected to be in issue as at the respective dates.



The company is projecting a Gross Earning Income of N8.5 billion, N11.2 billion and N14.2 billion for the years ending 31st December, 2008, 2009 and 2010 respectively.



While Profit after Tax (PAT) is expected to grow from N3.2 billion in 2008 to N5.7 billion in 2010 representing a 79 percent growth. Projected Profit before Tax (PBT) of DAAR Communications is also expected to rise from N5.8 billion in 2008 to N9.1 billion in 2010 indicating a rise of 56 percent.



However, historical financials summary of the company also made available to Proshare News/Investigations showed that PBT dropped from N335.2 million in 2002 to N223.7 million in 2007 indicating 33 percent decrease. While PAT also dropped from N349.7 million in 2002 to N223.7 million in 2007 indicating a decrease of 30 percent.



Lead Issuing Houses to the hybrid offering include BGL Securities Limited, Skye Bank Plc and Fidelity Bank Plc. While joint issuing houses are Wema Asset Management Limited, First Inland Bank Plc, Platinum Bank Plc and Spring Capital Markets Limited.



Others are Ecobank Nigeria Plc, Greenwich Trust Limited and Northbridge Investment and Trust Limited.



As at the time of filling in this report, without prejudice to our analyst review of the historical financial summary of the company, Proshare News/Investigations have not done proper analysis of these financials in respect of the DAAR Communications hybrid offering.

If the company's earnings has been descreasing over the years where are they come from with the projections. Are they hoping for a miracle? I believe in miracles, but I do not think that this is what we are looking at.

There has been an unusual support from most analysts for POs even if the fundamentals do not support such. To this end, it is imperative we are highly informed about the fundamentals of any given company we plan to invest in. This is because the fundamentals are the only thing with good management that can sustain a stock price after the market psychology is over.

[ovuthethird]

The Daar Offer would be opening sometime next week. Its actually an IPO (Offer for Sale and Subscription). Investigations reveal that the Offer for Sale is actually meant to meet the requirement for Listing on the NSE which states that at least "25% of the shares of a company must be in the hands of outsiders".

[Apache]

Guys,
just got this. Don't know if it will be of any use considering that the offer is opening today and the documents will be available. All the same, for your perusal. Please the gurus in the house should analyse

[newton]

Guy gone thru d doc u attached. It is a scanned copy of the prospectus, can u get d other part of it... forecast/figures...that wd aid proper valuation