Private Placements

Geeman · #1 (**permalink**) 17th May 2007, 05:55 AM

I am starting this thread to collect information on private placements that members may be in possession of for the benefit of interested forum members.
Private Placement is one way of buying cheaply into a company although the initial capital outlay is usually large. This has made it posible for the 'big boys and girls' to monopolize private placements. With appropriate strategy, I would like to think that a few people could team up and take advantage of private placements. The gurus in the house can come up with such strategies.
Over to you.

alanbow · #2 (**permalink**) 17th May 2007, 08:56 AM

Hi Geeman,

I already raised a sugggestion to the EIC about this on the suggestions thread and made exactly the same comments.

I think it is a brilliant idea.

Look at Diamond bank for example, I have no information uptil now if it is still available.

IGI finished a while ago although I think if you take your money to the head office now you may be able to convince the guys as I am not sure it is fully subscribed.

A dedicated thread and info on PP gets my vote so does possible collaboration when people in same geographical zones begin to hook up.

Avocado · #3 (**permalink**) 17th May 2007, 09:17 AM

alanbow: you're right about the IGI Private Placement. It's been on since last year; it's a bit surprising that they're haven't concluded it; it's about being concluded. I have no opinion about whether it's a good buy-in or not, but the pointers in Insurance shows it should be. I think (not completely sure) they're for N2.00 per share.

Diamond: difficult to get into the deal; not much news from me.

.

Miss_Risky · #4 (**permalink**) 17th May 2007, 03:51 PM

I got some IGI private placement just by word of mouth - from my sister no less! However, I bought at N2.20 per share and not N2.00 as Avocado mentioned. Hope I haven't been 'had' by the broker that sold it to me! This was only done last month after it was supposed to have been closed. Go figure!

Avocado · #5 (**permalink**) 17th May 2007, 05:08 PM

You weren't 'had'; the N2.20 is quite a fair price for last month, or this year; the placements were out in Sept. 2006, when they were for N2.00.

.

alanbow · #6 (**permalink**) 18th May 2007, 11:19 AM

Hmmmm! not sure.

I just got in this month, about two weeks ago directly from IGI for #2.00.

But I think you must buy a minimum of 250,000 units.

c kenneths · #7 (**permalink**) 18th May 2007, 02:27 PM

Good, so the information about how and where to obtain private placement is right here in the house since miss Risky and Alanbow had already had direct experience, so how did they start out and how did they finally buy in ?.

This is for the benefit of the house,waiting for your reply.

alanbow · #8 (**permalink**) 18th May 2007, 03:26 PM

Now I am in trouble.

I got wind of it from some friends,

Got my guys on the ground to go to thier head offfice to enquire and as long as you have 500k , they are willing to play ball.

I am not sure if that is still the case but it is worth a trial

I have not been that lucky with Diamond though. It has been a brick wall.

dotunk · #9 (**permalink**) 19th May 2007, 04:50 PM

well,

i think a thread on PP is necessary.

heard of both IGI and Diamond but could not join in... am not yet in that league... but hoping to br there someday when i can afford to buy such offers. but am getting educated now in readiness for that time.

c kenneths · #10 (**permalink**) 20th May 2007, 11:02 AM

Sometimes private placements are high risk investments since the companies in most cases are still not listed, fraudulent people has been known to have packaged some pp and when a lot of people with little knowledge and a lot of trust jumps on board , the carpet can be quickly swept from under their feet. Watch well before buying.

dotunk · #11 (**permalink**) 20th May 2007, 12:09 PM

good point!

please is it true that if you buy a PP, you dont get to sell the stock without permision from the NSE or from a regulatory body?

c kenneths · #12 (**permalink**) 20th May 2007, 03:02 PM

I can't confirm how true it is, but there are a whole lot of rules guiding investments into pp's. Its only best for the matured and experienced investors- the professionals.

Miss_Risky · #13 (**permalink**) 21st May 2007, 02:27 PM

...yet, I've invested in a private placement! I call it blind optimism.

@dotunk, is it possible the complication you are referring to relates to the type of shares you buy into? I was offered to buy either preference or ordinary shares in a PP and I chose to buy the ordinary shares of the company simply because I would rather be able to sell my ordinary shares on the secondary market relatively easily than enjoy the 'preferential' dividends of the preference shares and be stuck with it in the longer term.

From what I gathered, it is the preference shares that are not so easy to shift on the secondary market unlike the ordinary shares.

If anyone else can shed some light on this whole PP thing, it would be greatly appreciated as some of us are already in too deep.

Miss_Risky · #14 (**permalink**) 22nd May 2007, 10:53 AM

Quote:

Originally Posted by Avocado

You weren't 'had'; the N2.20 is quite a fair price for last month, or this year; the placements were out in Sept. 2006, when they were for N2.00.

.

Hi Avocado,

I've just come back from Naija and while I was there, discovered that I was most definitely had by the broker I used for the trade. She told me IGI was on offer @ N2.20 per share, however, the receipt she (belatedly) issued my sister had the correct price of N2.00 per share. So all in all, I bought at a premium.

Needless to say, she has now lost my custom for the sake of a quick (insignificant) buck!

alanbow · #15 (**permalink**) 22nd May 2007, 01:07 PM

Miss_Risky,

That is exactly what I thought, hence my skepticism when I saw your note about 2.20 naira.

This is why most of my friends are very wiery about anything to do with Niger especially those who have been out for a while.

God help us.....as I am not sure the next broker wouldn't be doing the same.

Stockmarket_Voyeur · #16 (**permalink**) 22nd May 2007, 01:34 PM

Quote:

I've just come back from Naija and while I was there, discovered that I was most definitely had by the broker I used for the trade.

Hey Miss-Risky,

I should be in Nigeria at the end of this week and have sent my stockbroker a meeting request so we can sit down and audit my account.
I just find her ever-so-slightly slippery: my CSCS account has not been activated though I have registered and they (stockbrokers) have paid the N2,500 fee, I have had only one protfolio review in the time I have been with them, though I have asked, I am still unclear of what funds remain in my account etc.
I just don't feel comfortable...maybe I'm being paranoid but anyway, I want to get across the message that I am seriously monitoring things.

c kenneths · #17 (**permalink**) 22nd May 2007, 10:34 PM

Just be close to your broker all the time and things will be hard to go bad.
Thats where influential brokers come in, use brokers from big firms and most of these complaints will be eliminated, remember the firm they work for has a reputation to protect eg, IBTC, FIDELITY, CSL, ZENITH, UBA etc.

FanIce · #18 (**permalink**) 23rd May 2007, 08:00 AM

Guys,
Do u have any info on the IGI Private placement? They seem to still be collecting money even as at last week. Also, I need to know growth prospects of the company as I have so much confidence in the stock approaching the N10 mark before year end. What do u think? Have invested a lot in the private placement.