Bubbles and heartbreak: why I avoid IPOs
Unlock the Stock: Afrimat and Spear REIT
Afrimat’s track record is spectacular. Spear REIT is a highly respected property fund. On Unlock the Stock, you can learn about both companies.
RCL is far more than just a chicken business
RCL is far more than just a chicken business these days, which isn’t a bad thing.
Bidvest: strong trading profit growth in every division
Bidvest closed 3.8% higher after releasing results for the six months to December 2021.
Liberty Two Degrees: reversions continue to bite
Liberty Two Degrees holds stakes in some of the most iconic properties in the country
Alviva: 20% revenue growth excl. Tarsus
After teasing the market with a trading statement, Alviva has now released all the details of the interim results for the six months ended December 2021.
PSG Group and the Great Value Unlock
This is one of the biggest news stories on the JSE that we’ve seen in a while
JSE Limited: a cash cow in a shrinking field
You may not be aware of this, but the JSE Limited is listed on the JSE. You’re right in thinking that this sounds like the financial version of the movie Inception
Capital Appreciation on the deal train
The company has announced the acquisitions of three technology companies in South Africa and a 20% stake in a company in the Netherlands.
Woolworths won’t miss 2021
as released results for the 26 weeks to 26 December 2021. The share price rallied 6% despite a fair share of negative commentary on Twitter.
Cashbuild’s negative sales momentum continues
Cashbuild released its interim results for the six months ended 26 December 2021
Comments (6)
Keke
12 May 2022What about IPOs offered in Property, are they also a no-show?
The Finance Ghost
12 May 2022With IPOs it always depends on the facts. So tech IPOs during a tech boom are a worry, but a random IPO should always be assessed on its merits. The nice thing with property is that the value typically doesn’t stray too far from the net asset value (NAV) per share, which makes it a bit easier to assess.
Paul
12 May 2022Hey Ghost – the last true IPO on the JSE was in 2012, so you have got what you wished for… we have lost a net 79 companies since then too. So no IPOs, fewer listed companies, diminished investment universe – please square that circle for me?
The Finance Ghost
12 May 2022Not sure about 2012 – I think there are many examples since then! But the delisting trend is clear and that’s mainly a liquidity problem in smaller caps, not necessarily an issue with IPOs. If they were priced reasonably, they would get more support. For as long as bankers use to-of-the-cycle IPOs to try palm off overpriced stock to investors, the IPOs themselves won’t be attractive. Difficult one because we all want to see more companies on the market, but nobody wants to see retail investors down 50% because they bought the hype.
Paul
12 May 2022Goes to the definition – a true IPO involves a registered prospectus and an open offer of shares to the general public. All new JSE listings since 2012 (less than half raised money) have either been restricted offers or private placings. 2012 was the last time Req 5.18 of the listings requirements was applied. The general public has basically been shut our of primary capital raisings on the JSE for over a decade.
The Finance Ghost
15 May 2022Thanks for clarifying – I guess the B-BBEE structures are probably the major exception to that. You’re right though – and the bankers do it because it’s so much easier to raise the money from a handful of institutions rather than the public. I haven’t looked at the spread rules in a long time but perhaps there’s room for change there, carving out a percentage for smaller shareholders.