Daar Communications Plc (AIT)

[moneymoney]

saw a draft of the financial statement and i think its megally ambitiuos but achieveable but all this talk of 2 in 1 offer is confusing the lay man (including me).

couldn't get the whole prospectus to know who own what. is it company A owning B or vice versa or vice not versa. does anyone know?

what percentage of his total holding is he releasing, up to 45%?

[Apache]

See attached the prospectus

[timothywill]

please can you guys kindly explain what they meant by shares for sale and another for subscription, because i already bought 500k units each of the two offer. please can som1 kindly explain, i dont want a situation whereby my application will be rejected 'cos of this issue, ppplllllllllllllssssssssss

[investor08]

I went through the prospectus but could not get anything on this. Does anyone know what DAAR INVESTMENT & HOLDING COMPANY LIMITED is into or will be doing to bring returns?

[Apache]

Originally Posted by timothywill

please can you guys kindly explain what they meant by shares for sale and another for subscription, because i already bought 500k units each of the two offer. please can som1 kindly explain, i dont want a situation whereby my application will be rejected 'cos of this issue, ppplllllllllllllssssssssss

@Timothywill, I don't think that was a good idea considering that you didn't have an understanding of this before you bought and also looking at the scenario of oversubscription and returning of monies, but i hope i am wrong for your sake.
To answer your question, the difference btw "subscription" and "sale" is that in subscription, the money been raised is been invested into the company for whatever it is they want to us it for. this will lead to a dilution of shares as more shares are added to the already existing ones.
In the case of offer for sale, it is already existing shares that are being sold hence, the money realised does not go to the company but rather to the pocket of whoever is making the offer. As such, there's no dilution of shares as the shares been offered already exist.
In your case, your application won't be rejected bcos you are applying for 2 different things (It's like applying for a rights & PO). But like i mentioned, i don't think it's a good idea bcos the volume you have applied for is quite high.
hope this helps

[riskreturn]

Originally Posted by timothywill

please can you guys kindly explain what they meant by shares for sale and another for subscription, because i already bought 500k units each of the two offer. please can som1 kindly explain, i dont want a situation whereby my application will be rejected 'cos of this issue, ppplllllllllllllssssssssss

I restrain myself from commenting under this thread because Daar Communications is an IPO, and not a Private Placement that this thread is meant to discuss. I guess many others too must have similarly decided to refrain from responding to comments and inquiries here. There already exists a sub-thread on this Daar Communications IPO under a more suitable thread, viz:

http://www.stockmarketnigeria.com/fo...t-listing.html

There, diiferences between offer for subscription and offer for sale have been fully discussed on 12 & 13 February and this may be referred to.

[madeonline]

Daar IPO/OFS: Technical Analysis & A-Z Of Online Purchase
TECHNICAL ANALYSIS

Good News

"Share certificates to be out in six weeks" - Chairman DAAR Goup, Chief RAymond Dokpesi

[According to Dokpesi, everything relating to the hybrid offering would be done electronically and with the latest technology, “you can download your forms from the internet, make your payments directly and shares would be allotted directly, and within six weeks of the closure of the offer; [/b] everybody should be able to have their share certificates” he said.] .... Source Proshare <http://www.proshareng.com/myproshare/portal_news.php?id=3680>

Highlights

1. Listing of shares of DAAR on the NSE by 2nd June 2008
2. Global outlook: 6 Regional offices, 2 Offshore offices and an Abuja Head Office
3. Investors to get certificates in 6 weeks - Proshare
4. Affordable price and units of sale with minimum of 1000 ordinary shares & multiple of 100 thereafter at 5 naira each.
5.100% firm underwriting of the offer
6. Seasoned management team
7. Dividend projected for share 2008y/e and next two consecutive years
8. Further equity diffusion planned until 2011
9. Strong business case, strong potentials & ability to compete favourable with market leaders if given strong financial backing
(Case Study: note Aljazeera recently stood shoulder to shoulder with CNN in quality satellite broadcasting)


HOW TO BUY ONLINE:
1. Print out a form as attached.
2. Fill out the form in blank ink, scan and email to your stockbroker
3. If you are yet to have a CSCS Numbers endeavour to get one since the numbers are esential for electronic posting
4. Email your scanned form to your Stockbroker
5. Effect online payment online via means provided by your stockbroker (if available)
6. Insist on evidence of purchase (Online statement of account and/or scanned copy of receipt of payment/payment confirmation)
7. Look out for your Shareholding/value on the CSCS via their website online access Learn how to log on to your CSCS account online here <http://www.nairaland.com/nigeria/topic-58129.0.html>

HOW TO AVOID/SECURE RETURNED CHEQUES
Consult your stockbroker, banker and/or financial adviser.

[madeonline]

I suggest the moderator moves this thread to IPO secton.

DAAR Investment Holding from my understanding is the umbrella body for the DAAR Group.

[ihenryus]

You are the best!
Ok Eggheads, what d'you guys think of this one? E be like say I dey inside this one o. Please change my mind if you can!

[cooldudeng]

I will like to know if it's okay to buy both offers or will that amount to multiple entries. Need help on this one, where the seniors at

[Apache]

Originally Posted by cooldudeng

I will like to know if it's okay to buy both offers or will that amount to multiple entries. Need help on this one, where the seniors at

Unfortunately, there are about 2 or more threads on this issue and a lot of your questions ahve been addressed. This is the problem with opening multiple threads on the same company. I hope EIC is doing somethiong about this but we have to call out to New members to stop opening threads anyhow.
To answer your question, it won't be multiple entry if you apply for both as it's just like applying for a rights and PO of the same company.
In summary, it's a worthy investment if you are ready to face the challenges of POs and oversubcription/ returned monies.
Please let's make an effort not to open new threads for companies that have already been discussed, and to direct newcommers to already existing threads and do not post on a duplicated thread.

[madeonline]

TECHNICAL ANALYSIS ON DAAR IPO/OFS 2008


USP: Share certificates to be out in six weeks" - Chairman DAAR Group, Chief Ramond Dokpesi

[According to Dokpesi, everything relating to the hybrid offering would be done electronically and with the latest technology, “you can download your forms from the internet, make your payments directly and shares would be allotted directly, and within six weeks of the closure of the offer; everybody should be able to have their share certificates” he said.]

Offer Highlights

1. Listing of shares of DAAR on the NSE by 2nd June 2008
2. Global outlook: 6 Regional offices, 2 offshore offices and an Abuja Head Office
3. Investors to get certificates in 6 weeks.
4. Affordable price and units of sale with minimum of 1000 ordinary shares & multiple of 100 thereafter at 5 naira each.
5. 5.100% firm underwriting of the offer by 9 Joint Underwriting firms
6. Other parties to the offer include 15 other leading Join Stockbrokers & 6 Joint Receiving banks, indicative of wide spread industry support and acceptance of offer.
7. Seasoned management team
8. (31kobo) Dividend projected for share 2008 y/e and 22% to 32% increase in dividend issue for the next two consecutive years
9. Further equity diffusion not planned until 2011
10. Strong business case, strong potentials & ability to compete favourable with market leaders if given strong financial backing.
11. Detailed offer prospectus with under-estimation of profits and over estimation of risks and in-depth analysis of product mix (most of which are in growth stage) in the context of globalization/profitability.
12. Guaranteed steady income from the expanding Nigerian Advertising Industry with regulated risks
13. Product divestment with profitability analysis to support projected profitability figures.
14. Divestment of resources within the DAAR group structure to strength the overall capacity of the group and increase profitability across board. Speculative reason for OFS hybrid nature of offer.
15. 5.25% and 5.94% allocated for laudable foreign and local expansion plans to support targeted product mix in line with global trend.

Finally, financial projections when compared to historical data are too conservative hence the offer is likely to be oversubscribed. Investors are advised to contact their stockbrokers in order to take advantage of the electronic allotment effectively

[chymex]

If you ask for more than 1000 units on this one, be sure to get your money returned. Very good one it seems, but I shall be watching from the fence and hope to see you guys on the floor !

[Lollypop]

Originally Posted by moneymoney

saw a draft of the financial statement and i think its megally ambitiuos but achieveable but all this talk of 2 in 1 offer is confusing the lay man (including me).

couldn't get the whole prospectus to know who own what. is it company A owning B or vice versa or vice not versa. does anyone know?

what percentage of his total holding is he releasing, up to 45%?

B4 Offer
DAAR Invest owns 95% approx
Ray Dokpesi owns 5% approx

(Ray Dokpesi owns 100% of DAAR Invest)

After Offer
DAAR Invest will own 61% approx
Ray Dokpesi will own 4% approx
Other investors will own 35%

Technically, after offer Ray Dokpesi who owns 100% DAAR Invest will own approx 65% of DAAR Comm.

[Lollypop]

Originally Posted by ikpong

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.

Actually, their earnings have not been decreasing, whoever read their financials misread them. In 2002, their FS shows a LBT of 335,200 & LAT of 349,733, these figs were turned around in 2005 with PBT of 166,384 & PAT of 146,789. In 2006, PBT was 209,623 & PAT was 168,689. Note that the 2007 figs are for 6 months to Jun 30th only, that is why PBT = PAT cuz tax has not been paid yet. Anyway, these are all historical figs & no guarantee for future success. Also, being a first in its industry sector, you cannot benchmark it against any others right now. Only time will tell in this instance. I wonder what they based their earnings & dividends projections on.

[Davog]

redirecting to
http://www.stockmarketnigeria.com/forums/other-stocks-investment-strategies/838-daar-comm-ait-listing.html