Associated Construction Development Bank PP

[Taipan]

Hello, I guess it will be good if we could do some real analysis on this bank as the yield potential is quite significant.
I'v been going thru the prospectus and i noticed a few things which i'll like to share with you all.
1. The offer has no underwriters.
2. The bank lacks any private sector pedigree i.e. backers
3. The prospectus does not indicate any starting date i.e. dates are listed in terms of yr1, yr2 etc. For all we know, yr1 could be 2010!
4. No apparent established framework or marketing plan.
5. The bank is estimating a PBT of N19.5b and PAT of N13.6b in its 1st yr. Now, if it could pull this off, it will put it firmly among the top 10 banks (top 5 using 2007 figures) n the country! Now i find this incredible considering that it has taken so many years of back-breaking labour for the current banks to get where they are.
6. The prospectus didnt indicate any planned listing (or application to be listed) date.
7. No office or website.
8. Having said all that, the PP seems quite cheap at an est 2.3 PE ratio for the 1st year. However considering that its still in formation, will probably not nearly meet its earnings forecast, and has no established/well-known private sector backers, its really difficult to say.
So over to you guys, what dyou think? Is ACDB a go or a bone?

PS: I'v written to their contact and still waiting to see if he would reply.

[Gengen]

Originally Posted by Taipan

Hello, I guess it will be good if we could do some real analysis on this bank as the yield potential is quite significant.
I'v been going thru the prospectus and i noticed a few things which i'll like to share with you all.
1. The offer has no underwriters.
2. The bank lacks any private sector pedigree i.e. backers
3. The prospectus does not indicate any starting date i.e. dates are listed in terms of yr1, yr2 etc. For all we know, yr1 could be 2010!
4. No apparent established framework or marketing plan.
5. The bank is estimating a PBT of N19.5b and PAT of N13.6b in its 1st yr. Now, if it could pull this off, it will put it firmly among the top 10 banks (top 5 using 2007 figures) n the country! Now i find this incredible considering that it has taken so many years of back-breaking labour for the current banks to get where they are.
6. The prospectus didnt indicate any planned listing (or application to be listed) date.
7. No office or website.
8. Having said all that, the PP seems quite cheap at an est 2.3 PE ratio for the 1st year. However considering that its still in formation, will probably not nearly meet its earnings forecast, and has no established/well-known private sector backers, its really difficult to say.
So over to you guys, what dyou think? Is ACDB a go or a bone?

PS: I'v written to their contact and still waiting to see if he would reply.

Be extra careful with Private Placements (especially 'unknown' companies)
Watch (extremely carefully, can be penny wise, pounds foolish),
Look (for any hidden traps, unrealistic claims, do extensive investigation, etc.),
and leap with care (if buying, use a REASONABLE amount)
BEWARE!!!

[Owo]

It seems to me to be a very high risk investing in this ACDB PP. I learnt they did one placement earlier this year, does anyone know how succesful that was.

[chineduz]

Originally Posted by Taipan

Hello, I guess it will be good if we could do some real analysis on this bank as the yield potential is quite significant.
I'v been going thru the prospectus and i noticed a few things which i'll like to share with you all.
1. The offer has no underwriters.
2. The bank lacks any private sector pedigree i.e. backers
3. The prospectus does not indicate any starting date i.e. dates are listed in terms of yr1, yr2 etc. For all we know, yr1 could be 2010!
4. No apparent established framework or marketing plan.
5. The bank is estimating a PBT of N19.5b and PAT of N13.6b in its 1st yr. Now, if it could pull this off, it will put it firmly among the top 10 banks (top 5 using 2007 figures) n the country! Now i find this incredible considering that it has taken so many years of back-breaking labour for the current banks to get where they are.
6. The prospectus didnt indicate any planned listing (or application to be listed) date.
7. No office or website.
8. Having said all that, the PP seems quite cheap at an est 2.3 PE ratio for the 1st year. However considering that its still in formation, will probably not nearly meet its earnings forecast, and has no established/well-known private sector backers, its really difficult to say.
So over to you guys, what dyou think? Is ACDB a go or a bone?

PS: I'v written to their contact and still waiting to see if he would reply.

I am not a guru on investments but I know enough to say that going by what you outlined there, it sounds more like a business proposal (in paper) and again whats missing is how they intend to achieve same. In conclusion I personally would not be comfortable investing any kobo in the private placement at this time, having said that this position could change so its all about updating our information on the said investment opportunities from time to time.
Just my opinion btw.....

[Taipan]

By the way, I got a mail from their (ACDB) contact that the PP is still on.

[Yusuf]

Originally Posted by Taipan

By the way, I got a mail from their (ACDB) contact that the PP is still on.

Please I need the following info about this PP.

Where I can get the Prospectus?

Who are the people behind this bank and the PP?

Is it a new structure all together or an existing structure?

What is your take on the offer of the PP?

Good response will be highly appreciated

[ikpong]

What the have is a business proposal for starting a bank. Given that it is a business proposal, it is a poor one at that. It is proposed to be a niche market bank - construction industry bank. It is mportant to realize that most times contractors execute a contract and the government may not pay them for 6 months to 1 year. If this happens, how is the bank going to make its profit? Currently, they have no infrastructure or managemnet in place. One is better off waiting for the bank to start and participate in an IPO, instead of the current private placement. If in doubt, check out the prospectus link below:

http://www.wemaasset.com/acdb_prospectus.pdf

Ikpong

[newton]

Whao! This is one private placement set to fail. Looking thru the promoters of the bank, though seasoned engineers/architects, I dare say they lack requisite financial expertise for such venture. Also the fact that the offer is not underwritten and that 60bn shares are being issued... its a big joke.

[Babs_O]

Not enough info to judge the offer.
But the business they intend to go into does not look like a high yielding one thereby even dampening my interest.

[chidiohaz]

Let's not be judgemental, those written to or invited for the pp I believe would understudy the objective of this offer b4 plunging into it.

If it's favourable to them, they must have their reasons for engaging otherwise I believe Nigerian Investors, story ? story?? story???