Starcomms

[fredski]

Originally Posted by polosco

i don't see the possibility of this relly working out at this time with so many people who don't know each other from anywhere, if it can work out i'm interested. Let's try it out..

All thats needed is starting up a share or investment club with a binding and duly registered guidelines and constitution. It can even be done based on a single transaction or PP.

This however is someting that should have been started by now. With regards to Starcomms in particular, is there really time to play catchup???
Guess this is one for the future.

Oooooops looks like the future is here already.

[BLUEMONEY]

i just heard from a stockbroker that starcomms may be planning a public offer. this seems to be different from what we have heard. at first, it was to be bidded for, then came the 25% private placement and now public offer. i just hope all is well.

[Catweasel]

Heard this afternoon from an IBTC Broker that it was as yet unclear or undecided whether is will be a PP or IPO, but they are already taking book-prices from their customers. They also stated that they would be the issuing house

[zainabusman]

Originally Posted by Catweasel

Heard this afternoon from an IBTC Broker that it was as yet unclear or undecided whether is will be a PP or IPO, but they are already taking book-prices from their customers. They also stated that they would be the issuing house

Yes i heard the same thing from IBTC yesterday.

[Babs_O]

Originally Posted by Catweasel

Heard this afternoon from an IBTC Broker that it was as yet unclear or undecided whether is will be a PP or IPO, but they are already taking book-prices from their customers. They also stated that they would be the issuing house

They should just make it IPO so that more people will benefit as they are already well established. Also they stand to gain more appeal and mass market attraction going IPO.

[BLUEMONEY]

Originally Posted by Babs_O

They should just make it IPO so that more people will benefit as they are already well established. Also they stand to gain more appeal and mass market attraction going IPO.

once again you are right. IPO will be the best for this guys. nigerians will flock to their network when they know that they will also share from thier profits by being shareholders.

[polosco]

i earnestly pray they go on IPO to enable us come in at the grass root and enjoy with all others the super profit of this sector.

[Babs_O]

Originally Posted by BLUEMONEY

once again you are right. IPO will be the best for this guys. nigerians will flock to their network when they know that they will also share from thier profits by being shareholders.

Yes that's how I see it !.

[owen1968]

Originally Posted by vnedu

Newton how do we go about the spreading becos i am sure this one will be over subcribed more than the dangote flour. But can these company find a way of doing this to avoid this disheartening oversub wahala. i suggest first come first served basis should be used or better still make it a max of 100k units for each offer they know will be oversubbed. guys what do u think?

Be careful what you wish for. The first come first serve basis will be counter productive as it will give the issue the power to decide who gets allocated shares. This can be done with an easy backdate of the application.

Making it a max of N100K introduces the risk of the issue not be fully subscribed. Many subscribers will find this amount not worth their time and the small subscribers will not be able to hit the offer amount. Note that we get offers 300% oversubscribed even when we have a number of people apply for 100s of millions.

The current system is tried and tested and works. Note the organizations will rather take money from small investors, because they get the amount they are looking for and still keep control. Notice that small investors are always allocated 100% while larger ones get as little as 5% e.g First Bank's offer.

Private placements are another issue. PP by definition is reserved for people that have a personal relationship with the owners or issuers. PPs serve the purpose of beefing up a company's balance sheet at a time when their operations may not be able to sustain an IPO. At the PP stage the company still needs to convince investors that they are worth the risk.

We can vent all we want, but apart from those of us that can afford to tie down N25M - N50M, we better serve ourselves by focusing on IPOs or POs. Some PPs take a while and many do not make it.

The fact that Nigeria is an emerging market and that the economy is vibrant has increased the success ratio for PPs, but it still will not change the game.

[owen1968]

Originally Posted by Babs_O

They should just make it IPO so that more people will benefit as they are already well established. Also they stand to gain more appeal and mass market attraction going IPO.

You have to take off your investor hat and wear your corporation owner hat. If you are seeking for funds what are your goals?

1) Get the full amount I require. Full or over subscription
2) Retain as much control of the corporation as possible
3) Achieve this goal through the least costly method
4) Ensure that the corporation is correctly appraised

Many here seem to think that corporations go to market for funds in order to make investors rich, while in reality they go to market to make themselves rich.

The promise of riches is only meant to ensure that the offer is successful. The fulfillment of this promise is secondary and only a by product of the company's success and to please shareholders.

[BLUEMONEY]

Originally Posted by owen1968

You have to take off your investor hat and wear your corporation owner hat. If you are seeking for funds what are your goals?

1) Get the full amount I require. Full or over subscription
2) Retain as much control of the corporation as possible
3) Achieve this goal through the least costly method
4) Ensure that the corporation is correctly appraised

Many here seem to think that corporations go to market for funds in order to make investors rich, while in reality they go to market to make themselves rich.

The promise of riches is only meant to ensure that the offer is successful. The fulfillment of this promise is secondary and only a by product of the company's success and to please shareholders.

i have put on my corporation owner hat like you suggested & what i see is that it will be easier for the corporation owners to retain as much control of the company by doing an IPO that will attract the average nigerian that buys the minimum 1000 units than doing a PP that attracts the high net-worth nigerians that are ready to buy more than half of the PP for themselves.

i still believe an IPO is thier best bet. with the new 80% underwriting policy in place, undersubcription is a thing of the past (if you dont buy the offer, the underwriters will buy it).
while it is true that an IPO is more expensive to package than a PP, my question is who is paying ? read your prospectus, the cost of packaging the offer is gotten from the offer proceeds. ALL THIS BEING SIAD, STARCOMS SHOULD DO AN IPO. i stand to be corrected .

[owen1968]

Originally Posted by BLUEMONEY

i have put on my corporation owner hat like you suggested & what i see is that it will be easier for the corporation owners to retain as much control of the company by doing an IPO that will attract the average nigerian that buys the minimum 1000 units than doing a PP that attracts the high net-worth nigerians that are ready to buy more than half of the PP for themselves.

i still believe an IPO is thier best bet. with the new 80% underwriting policy in place, undersubcription is a thing of the past (if you dont buy the offer, the underwriters will buy it).
while it is true that an IPO is more expensive to package than a PP, my question is who is paying ? read your prospectus, the cost of packaging the offer is gotten from the offer proceeds. ALL THIS BEING SIAD, STARCOMS SHOULD DO AN IPO. i stand to be corrected .

I was not comparing an IPO and a PP. Like I said in an earlier post, PPs are by definition private and offers are accepted at the descretion of the issuer. There is no risk of losing control of ownership in a PP. PPs are also executed at a different stage in the issuers finance round and serve a different purpose than a public offer.

As an Investor I too want StarComms to fo an IPO and they just might. However, corporations should fund themselves by employing the best option available for existing investors of that corporation and not for the sole benefit for new investors coming in.

The managers of StarComms must act in the interest of current investors only. New investors should be encouraged by that because they too will become current investors one day and you don't want managers mortgaging the future of the corporation to please potential investors.

[Natty]

Someone promise to send me the PP form 2mrw. They are claiming that the form is very scarce and the placement may last for a week or so.

[zainabusman]

Originally Posted by Natty

Someone promise to send me the PP form 2mrw. They are claiming that the form is very scarce and the placement may last for a week or so.

I called IBTC immediately i read ur post. They said such a form does not exist as Starcomm is yet to decide whether to do a PP or not. Once the decision is made they will let me know.

Anyway, should you get the form please upload it to this site.

[dabase]

hi everyone,am new to the forum and most confess that this discovery is the best thing to happen to me since i started investing in stocks.on the starcomms offer,it's a pp and minimum is 5m naira.i just paid for mine today.the mode of the offer is quite complex.the management of starcomms handed the entire thing to ibtc who called for a bidding from select institutional investors.i happen to use one of such investors as my advisers.it's still on though closing today.

[zainabusman]

Originally Posted by dabase

hi everyone,am new to the forum and most confess that this discovery is the best thing to happen to me since i started investing in stocks.on the starcomms offer,it's a pp and minimum is 5m naira.i just paid for mine today.the mode of the offer is quite complex.the management of starcomms handed the entire thing to ibtc who called for a bidding from select institutional investors.i happen to use one of such investors as my advisers.it's still on though closing today.

Really? Which stockbroker did you use?