Japaul Oil

[anekwlc]

Originally Posted by Geeman

I got a call from my stock broker this evening. Japaul is returning money for units above 50,000. It proposes to retain the balance over 50,000 units applied for and intends to do a PP later in the year at 3.99 per share to absorb that balance. You must sign a letter consenting that they hold unto the balance of the money pending the PP otherwise the moeny will be returned. I have been sent the letter, I am reluctant to sign since I don't know when the PP will take place.

Hello Geeman, This story does not sound straight to me. Why should they want to go for PP at 3.99 later in the year whereas they have opportunity for another PO later in the year at about N10? Again how can corporate organization ask me to sign consent for them to keep my money without fixing a date for the PP? Who are you going to address this letter to and who will acknowledge receipt? Without acknowledgement or Jaupoil publishing this on newspaper, I do not think contract exist.
Is it your broker that is holding this money for you and you are giving a consent? We watch and see how this unfold

[nezvest]

I must tell you that I cannot risk such offer. There are a lot of juicy stocks out there for one to make money from. Why stke your money in such offer that is so uncertain? Be wary!

[Geeman]

Originally Posted by Olayimika

Geeman
Pls explain further, ive been to my brokers and they know nothing about this.Can i visit their registrars directly.Pls advise.Ill like to sort this out tomorrow if possible.
Thanks

The information as stated in my first post is correct. It was perhaps not meant to be for public consumption. The key is that if you bought yours from an issuing house, check out the information with them. I bought mine from one of the issuing houses and got the letter from them.

[justice bende]

Hi Geeman
to be clear, are you saying that that opportuinity is only for those who bought from the issuing house? If not, what can those of us who bought from our brokers do especially now that they do not have any idea about the pp.
Please kindly advice.

[nezvest]

Who has idea around what price japaul oil couldbe supported after the market rally. Tha is when price adjustments sets particularly if it happens before they post their final yr result?

[chidianosike]

Originally Posted by justice bende

Hi Geeman
to be clear, are you saying that that opportuinity is only for those who bought from the issuing house? If not, what can those of us who bought from our brokers do especially now that they do not have any idea about the pp.
Please kindly advice.

I was at my broker today to sign the letter. in my understanding, the PP is not going to be automatic. Signing the letter is like a vote for or against the 'Placement'. Majority will carry the vote. I understand SEC didnt agree to the idea of Japaul absorbing the full oversubscription but Japaul pleaded that they need the funds. and so Japaul came up with the idea that anything above 50,000 units would be absorbed through a 'placement' at 3.95 subject to majority of subscribers giving their consent by signing the letter. The letter is basically authorizing Japaul to hold ur money till the placement. If at the end of the day, the number of subscribers who authorize the placement by signing letter out weighs those who dont sign then the placement will be done and we can get whatever we paid for (above the basic 50,000 units) however, if less subscribers authorise it ( ie, more people dont sign) then we all get our monies back and we get to keep 50,000 units only.
so it now boils down to the individual and how much value he places on Japaul. For me i signed the letter, i want my full due alloted. Its a gamble and i am taking the plunge.. afterall i had already written off the money as spent...
Japaul looks good to me. I'm waiting for their result. Market sentiment is working for them at the moment. Huge volumes were still being sought after at 10 naira. We all have our objectives..so lets all be guided by it in taking a decision as to whether to sign or not.

[Zito]

Many thanks for the update. Our ears are on the ground.

[justice bende]

Originally Posted by chidianosike

I was at my broker today to sign the letter. in my understanding, the PP is not going to be automatic. Signing the letter is like a vote for or against the 'Placement'. Majority will carry the vote. I understand SEC didnt agree to the idea of Japaul absorbing the full oversubscription but Japaul pleaded that they need the funds. and so Japaul came up with the idea that anything above 50,000 units would be absorbed through a 'placement' at 3.95 subject to majority of subscribers giving their consent by signing the letter. The letter is basically authorizing Japaul to hold ur money till the placement. If at the end of the day, the number of subscribers who authorize the placement by signing letter out weighs those who dont sign then the placement will be done and we can get whatever we paid for (above the basic 50,000 units) however, if less subscribers authorise it ( ie, more people dont sign) then we all get our monies back and we get to keep 50,000 units only.
so it now boils down to the individual and how much value he places on Japaul. For me i signed the letter, i want my full due alloted. Its a gamble and i am taking the plunge.. afterall i had already written off the money as spent...
Japaul looks good to me. I'm waiting for their result. Market sentiment is working for them at the moment. Huge volumes were still being sought after at 10 naira. We all have our objectives..so lets all be guided by it in taking a decision as to whether to sign or not.

thanks alot chidi that information is priceless. pls keep us updated. I will sign the form too when I see it.

[Gengen]

Is a company listed on the Stock Exchange allowed to do a private placement? Is this not contrary to the principles of public ownership?

Although I am not against Japaul absorbing more of the funds it raised through the IPO, rules should be followed. If they are bent now, others will clamour to bend the rules later.

This is not similar to a big investor buying to a company. Even when this is done, shareholders are required to approve them.

[riskreturn]

Originally Posted by Gengen

Is a company listed on the Stock Exchange allowed to do a private placement? Is this not contrary to the principles of public ownership?

Although I am not against Japaul absorbing more of the funds it raised through the IPO, rules should be followed. If they are bent now, others will clamour to bend the rules later.

This is not similar to a big investor buying to a company. Even when this is done, shareholders are required to approve them.

While I do not take a stand on whether Japauloil should do the PP, I do not think that it is a breach of the rules. I think it would just be exploiting the loopholes in the SEC and other rules, which is different from breaking the rules. I do not think there is a rule that allows private placement of a quoted coy by inviting only one or few ones to buy into that coy but which, at the same time, prevents many from subcribing for the PP shares. I think all that would need to be done would be to ratify (or, is it rubber-stamp) the decision (e.g., just about a week before the pp share allotment) o an Extraordinary General Meeting of shareholders. I think it is just being creative and innovative and, unless SEC and other regulatory bodies makes a specific prohibition of the practice through another (and more specific) set of rules, it would provide an opportunity for other quoted coys to follow the approach.

[nezvest]

Originally Posted by Gengen

Is a company listed on the Stock Exchange allowed to do a private placement? Is this not contrary to the principles of public ownership?

Although I am not against Japaul absorbing more of the funds it raised through the IPO, rules should be followed. If they are bent now, others will clamour to bend the rules later.

This is not similar to a big investor buying to a company. Even when this is done, shareholders are required to approve them.

Gengen, I concur with yo. I do not cherish that idea by Japaul oil. There i need for following appropriate quaters in doing things. Overzealousness can be counterproductive sometimes.

We have to be careful.

[El-Kayode]

Originally Posted by Geeman

I got a call from my stock broker this evening. Japaul is returning money for units above 50,000. It proposes to retain the balance over 50,000 units applied for and intends to do a PP later in the year at 3.99 per share to absorb that balance. You must sign a letter consenting that they hold unto the balance of the money pending the PP otherwise the moeny will be returned. I have been sent the letter, I am reluctant to sign since I don't know when the PP will take place.

The story so-far on the allotment of the japaul IPO is finally put to an end with the publication on the Punch today. 50,000 and below got full allotment.

Japaul IPO allotment as extracted from the Punch newspaper dated 13th February, 2008, page 46 & 47.
1000 - 5000 100%
5001 - 10,000 100%
10,001 - 20,000 100%
20,001 - 50,000 100%
50,001 - 100,000 19.24%
100,001 - 200,000 7.50%
200,001 - 500,000 5.50%
500,001 - 1,000,000 2.25%
1,000,001 - 5,000,000 1.25%
5,000,001 - 10,000,000 1.25%
10,000,001 - 9,999,999,999 1.25%

[riskreturn]

Originally Posted by El-Kayode

The story so-far on the allotment of the japaul IPO is finally put to an end with the publication on the Punch today. 50,000 and below got full allotment.

Can you please provide the website link to the Punch publication or, alternatively, paste the publication here? I have not been able to read the story in the online Punch that I have access to.

[El-Kayode]

Originally Posted by riskreturn

Can you please provide the website link to the Punch publication or, alternatively, paste the publication here? I have not been able to read the story in the online Punch that I have access to.

I just updated the allotment publication. Cheers.

[El-Kayode]

Originally Posted by El-Kayode

I just updated the allotment publication. Cheers.

Japaul IPO allotment
1000 - 5000 100%
5001 - 10,000 100%
10,001 - 20,000 100%
20,001 - 50,000 100%
50,001 - 100,000 19.24%
100,001 - 200,000 7.50%
200,001 - 500,000 5.50%
500,001 - 1,000,000 2.25%
1,000,001 - 5,000,000 1.25%
5,000,001 - 10,000,000 1.25%
10,000,001 - 9,999,999,999 1.25%

[riskreturn]

Originally Posted by El-Kayode

Japaul IPO allotment
1000 - 5000 100%
5001 - 10,000 100%
10,001 - 20,000 100%
20,001 - 50,000 100%
50,001 - 100,000 19.24%
100,001 - 200,000 7.50%
200,001 - 500,000 5.50%
500,001 - 1,000,000 2.25%
1,000,001 - 5,000,000 1.25%
5,000,001 - 10,000,000 1.25%
10,000,001 - 9,999,999,999 1.25%

Are the percentages applicable to incremental units or what? In other words, for someone who applied for 55,000 units, is 19.24% applicable to the entire units applied for (so that he/she would be alloted just 10,582 units - which is much lower than 50,000 he/she would have got if that is only what was applied for)? Or (as it is fairer and more logical) does it apply to just the excess above 50,000 units (i.e., the subscriber would be alloted the first 50,000 units plus 962 units, which is 19.24% of 5,000 increment above 50,000)? I gues you should be able to infer that within the context of the publication in the Punch.