Mama Cass Pp

[muranay@yahoo.com]

Mama Cass seeks N1.4bn through Private Placement
Posted Thursday, August 28, 2008




Analyst Unit
Proshare NI
August 27, 2008 at 16:23 GMT



Mama Cass Restaurants Limited has commenced efforts to raise fresh funds of N1.4 billion through a Private Placement (PP).



This was contained in a confidential Placement Memorandum dated August 15, 2008 and made available to Proshare NI today in Lagos Nigeria.



Mama Cass is expected to raise the N1.4 billion by offering to select investors 400 million Ordinary Shares of 50 Kobo each at N3.50 Kobo per share.



From the profit forecast made by the eatery company, Turnover is expected to increase from N1.623 billion in year 2008 to N5.289 billion in year 2012 indicating an increase of 226 percent in the forecast period.



Forecast Gross Profit is also expected to grow from N720 million in year 2008 to N2.116 billion in year 2012 showing a growth of 194 percent.



Profit before Tax (PBT) is also expected to rise from N244, 745 million in 2008 to N1.004 billion in 2012 representing a rise of 310.28 percent in the projected period.



While Profit after Tax (PAT) has been projected to increase from N171.321 million in year 2008 to N702.905 million in year 2012 showing an increase of 310.28 percent.



Mama Cass has also projected a dividend payout of 12, 15, 20, 30 and 35 Kobo dividends payout for the 2008, 2009, 2010, 2011 and 2012 Financial Year Ends (FYE’s) respectively.



However, the eatery company affirmed that dividend per share are based on post offer 1,091,000,000 ordinary shares of 50k each.



In the same vein, as reported in the company’s 2007 year end, Turnover grew from N433.557 million in year 2003 to N1.226 billion in year 2007 indicating a growth of 180 percent in the review period.



Gross Profit also appreciated from N151.270 million in year 2003 to N404.528 million in year 2007 FYE representing an appreciation of 167 percent.



PBT rose from N68.686 million in year 2003 to N82.808 million in year 2007 showing a rise of 20.56 percent.



While PAT declined from N58.385 million in year 2003 to N55.619 million in year 2007 indicating a decline of five percent in the review period.



Mama Cass is offering a minimum of 100,000 units and multiples of 10,000 units thereafter.



The Placement which opened on Monday August 25, 2008 will close September 19, 2008. Joint Issuing Houses/Arrangers are UBA Global Markets Limited and Access Bank Plc.

[Abinishio]

Let them go sit down !!!

[tinselgroup]

Very soon my old mother will come for private placement. Why not. she cooks for me and the rest of the family whenever we visit village.This nonsense in the country has to stop.

[hispy99]

Based on 1.09B shares post PP, offer price of N3.50 and PAT N0.702B in 2012, forward 2012 PE is 5.4. If we keep today's prices constant, what will be the PE of companies with PEs < 12 now in 2012? Most likely less than 5.

[Davog]

Originally Posted by hispy99

Based on 1.09B shares post PP, offer price of N3.50 and PAT N0.702B in 2012, forward 2012 PE is 5.4. If we keep today's prices constant, what will be the PE of companies with PEs < 12 now in 2012? Most likely less than 5.

Guys we should be very careful the way we buy pp this days.

[solainvest]

Find attached the PP document for review.

[hispy99]

Originally Posted by solainvest

Find attached the PP document for review.

thank you sir

[zubychyle]

Originally Posted by muranay@yahoo.com

Mama Cass seeks N1.4bn through Private Placement
Posted Thursday, August 28, 2008




Analyst Unit
Proshare NI
August 27, 2008 at 16:23 GMT



Mama Cass Restaurants Limited has commenced efforts to raise fresh funds of N1.4 billion through a Private Placement (PP).



This was contained in a confidential Placement Memorandum dated August 15, 2008 and made available to Proshare NI today in Lagos Nigeria.



Mama Cass is expected to raise the N1.4 billion by offering to select investors 400 million Ordinary Shares of 50 Kobo each at N3.50 Kobo per share.



From the profit forecast made by the eatery company, Turnover is expected to increase from N1.623 billion in year 2008 to N5.289 billion in year 2012 indicating an increase of 226 percent in the forecast period.



Forecast Gross Profit is also expected to grow from N720 million in year 2008 to N2.116 billion in year 2012 showing a growth of 194 percent.



Profit before Tax (PBT) is also expected to rise from N244, 745 million in 2008 to N1.004 billion in 2012 representing a rise of 310.28 percent in the projected period.



While Profit after Tax (PAT) has been projected to increase from N171.321 million in year 2008 to N702.905 million in year 2012 showing an increase of 310.28 percent.



Mama Cass has also projected a dividend payout of 12, 15, 20, 30 and 35 Kobo dividends payout for the 2008, 2009, 2010, 2011 and 2012 Financial Year Ends (FYE’s) respectively.



However, the eatery company affirmed that dividend per share are based on post offer 1,091,000,000 ordinary shares of 50k each.



In the same vein, as reported in the company’s 2007 year end, Turnover grew from N433.557 million in year 2003 to N1.226 billion in year 2007 indicating a growth of 180 percent in the review period.



Gross Profit also appreciated from N151.270 million in year 2003 to N404.528 million in year 2007 FYE representing an appreciation of 167 percent.



PBT rose from N68.686 million in year 2003 to N82.808 million in year 2007 showing a rise of 20.56 percent.



While PAT declined from N58.385 million in year 2003 to N55.619 million in year 2007 indicating a decline of five percent in the review period.



Mama Cass is offering a minimum of 100,000 units and multiples of 10,000 units thereafter.



The Placement which opened on Monday August 25, 2008 will close September 19, 2008. Joint Issuing Houses/Arrangers are UBA Global Markets Limited and Access Bank Plc.

This is turning to a child's play.

[Babs_O]

Originally Posted by solainvest

Find attached the PP document for review.

Thank you for the document.

I have a natural tendency to support ventures like this. But may hold break small as it looks overpriced for the following reasons.

My calculated P/B for Mid 2008 based on PP price is 4.6
Also noticed they have already raised some money in 2008 and this seem not to be showing too much in the shareholders funds except this true PP (i.e. earlier raised money) was done at about N 1.00 per share.

End 2007 PE (including total shares by mid 2008 at time of this placement) indicate a PE of 31.8 And by end 2008/2009 they project PE of 22.3/17.8

The PP will be more attractive at a price of N 1.8 or below.

[azob2002]

Originally Posted by Babs_O

Thank you for the document.

I have a natural tendency to support ventures like this. But may hold break small as it looks overpriced for the following reasons.

My calculated P/B for Mid 2008 based on PP price is 4.6
Also noticed they have already raised some money in 2008 and this seem not to be showing too much in the shareholders funds except this true PP (i.e. earlier raised money) was done at about N 1.00 per share.

End 2007 PE (including total shares by mid 2008 at time of this placement) indicate a PE of 31.8 And by end 2008/2009 they project PE of 22.3/17.8

The PP will be more attractive at a price of N 1.8 or below.

It quite appalling the way these banks and issuing houses talk these coys into going for PPs Well all they are after is their fees which would swell their profits... At the proposed price i think they must be joking.. how did they even arrive at that price, i would like to take any of their valuation experts on on this one!!

As for me the rea of PPs is over.. i rather look for some undervalued stock in the secondary mkt!

[Taipan]

While I do not have any problems in companies coming out for Private Placements now and then - in fact, I encourage it because that is the easiest way for the economy to grow - I do have a problem with the ridiculous prices they quote.
Historically, PPs have always been risky prospects and so have usually come cheap. However, it seems the opposite - where PPs are now more expensive and yet more risky - is fast becoming the case in Nigeria.
I wonder how UBAGM can justify packaging a PP (mama cass) with 2008 FPE of 22.3. Starcomms to me was even was. After projecting a loss for 2008, the 2009 PE was still 18.5 yet people were killing themselves for it.
Anyway, I'll still buy a PP if it comes at a very reasonable price.