Ford Lay off: Ford Motors fires employees

The news from Ford is not good for the employees. Ford Motors have decided to lay off many salaried workers or employees. Though the number of employees to be laid off is not certain, but the rumors going around do indicate some figures. Ford Lay off

The lay offs will be carried out this summer and the entire lay off cycle will be completed by 1st August.

Detroit media reported that Ford will cut 10 percent to 12 percent of its salaried workforce, which means something more than 2,000 employees.
Because Ford wants the cuts made by August, the company doesn’t expect to offer voluntary packages, Truby said.
The primary reason for this job cut by ford motors is due to the failure in reaching the profits levels. Ford abandoned its goal of returning to profitability by 2009 amid slumping U.S. light-truck sales. It also made sweeping production cuts, slashing output by 15 percent in the second quarter compared with the same quarter last year. Third- and fourth-quarter production will plunge as much as 20 percent and 8 percent, respectively.
Ford said that by July it will have more details about how it plans to cut costs.The automaker entered this year’s launch cycle with one-third third fewer salaried workers than it had earlier this decade. Table of Contents

Bangkok Life Assurance IPO

There is a new IPO planned by an Insurance firm in Thailand. The IPO is expected in August. The firm which is bringing out the IPO or Initial Public Offering is Bangkok Life Assurance PCL, which is a sister concerned company of Thailand's biggest lender Bangkok Bank. Bangkok Life Assurance IPO

When is the Bangkok Life Assurance IPO expected to open for subscription/application?
The Bangkok Life Assurance IPO will come to the markets by August, 2008.

What is the price per share of Bangkok Life Assurance IPO?
The Bangkok Life Assurance IPO shares have been priced at the rate of around 5 baht per share. This price estimate is derived from the expected size of the Bangkok Life Assurance IPO and the total number of shares to be sold.

What is the expected size of the Bangkok Life Assurance IPO?
The Bangkok Life Assurance IPO expects to raise around 1 billion baht through the initial public offering.

How many shares will be offered for sale through the Bangkok Life Assurance IPO?
A total of 200 million shares will be offered for sale through the Bangkok Life Assurance IPO.

Where will the capital raised or IPO proceeds be used by Bangkok Life Assurance IPO?
The Bangkok Life Assurance IPO proceeds will be used to fund its expansion plans.
According to a recent filing with Thailand's Securities and Exchange Commission, Bangkok Bank and the founding Sophonpanich family will see their combined holding in Bangkok Life diluted to 39.9 percent after the IPO from a current 47.9 percent.
Japan's biggest insurer, Nippon Life Insurance Co, would also see its holding in the Thai insurer diluted to 20.83 percent from 25 percent now.Let’s see how this Bangkok Life Assurance IPO performs in the markets. Table of Contents

MFSL IPO: Microsec Financial Services IPO

A brokerage house is expected to come out with its IPO or initial public offering. It’s the IPO from Microsec Financial Services.
MFSL Microsec Financial Services IPO

What is the expected size of the Microsec MFSL IPO?
The Microsec Financial Services IPO is expected to raise around 1600 million Rs. from the IPO or initial public offering.

How many shares will be offered for sale through the Microsec MFSL IPO?
A total of 8 million shares will be offered for sale through the Microsec IPO.

What is the business and valuations of Microsec Financial Services?
MFSL is a financial services company providing primarily retail broking, loan against shares (LAS) to support the broking business and investment banking services. It also offers commodity broking, insurance broking and distribution of financial products to complete the bouquet of offerings. Further, the company is in the process of launching institutional equities broking and portfolio management services in the current year. MFSL is headquartered in Kolkata and operates from around 196 business-locations in 49 Indian cities. Of the total 196 branches the company owns around 17 branches and the rest are franchisee-based. The company derives a major portion of its revenues from the eastern India region.

What will be the price range or price band of Microsec MFSL IPO?
As per the no. of shares offered and expected size of the Microsec MFSL IPO, the price per share for Microsec MFSL IPO shares will be around 200 Rs. per share.

Any ratings assigned to Microsec MFSL IPO?
Yes. And the news is not very good for Microsec MFSL IPO. CRISIL has assigned IPO Grade "2/5" to the initial public offer of Microsec Financial Services Ltd, indicating the fundamentals of the issue are below average.
Let’s see how this Microsec MFSL IPO performs in the markets. Table of Contents

PrimeTel Cyprus IPO

An IPO from PrimeTel which is a telecom service provider is expected to come to list in the Alternative Market of the Cyprus Stock Exchange.

The IPO from PrimeTel from Cyprus is expected to hit the markets next month.
What are the opening dates of PrimeTel Cyprus IPO?
The PrimeTel Cyprus IPO will open for applications on 9th June and conclude on 18th June 2008.

Where will the capital raised used for PrimeTel Cyprus IPO?
The primary use of the capital raised by the PrimeTel Cyprus IPO will be for funding of business and group expansion drive.

How many shares of PrimeTel Cyprus IPO will be sold through the PrimeTel Cyprus IPO?
A total of 15.1 million shares will be sold through the PrimeTel Cyprus IPO. According to the listing prospectus, 4 mln shares will be offered to subscribers, 7.5 mln to professional investors and a select group of people and 2.85 mln to the public. PrimeTel will also offer 750.000 shares free to staff and executives.

What is the price of the PrimeTel Cyprus IPO shares?
The final price at which the shares will be offered will be determined on June 6 through the book-building method and will apply to all categories. Though the news is that the maximum price for PrimeTel Cyprus IPO shares will be limited to EUR 0.38 per share.

What is the amount of money to be raised by PrimeTel Cyprus IPO?
With the price of 0.38 Euros per share, the IPO size comes to raise around EUR 5.45 million shares.
What are the business valuations, financial results and market outlook for PrimeTel Cyprus IPO?
Laiki Investments is the issue manager while CISCO drafted the prospectus.
PrimeTel reported EUR 14.22 mln in turnover for 2007, up 158% YoY compared to EUR 5.52 mln reported in 2006 of which 8.13 mln originated from business accounts and EUR 6 mln from individuals. The net loss for 2007 amounted to EUR 2.16 mln compared to a net loss of EUR 2.69 mln reported in 2006.
By March 31, 2008, the company’s liquidity amounted to EUR 1.25 mln, but it has short and long term loans amounting to EUR 18 mln. No other information regarding the 2008 profitability forecast or future subscriber targets have been mentioned in the prospectus. The cost of the campaign to seek a listing on the CSE is expected to amount to EUR 200,000.

The company will also offer a total of 26.267.000 free warrants in the ratio of 1 for every 6 shares subscribed, to be exercised in 2011. The issued share capital at present amounts to 142.5 mln shares of EUR 0.17 nominal value.
Let’s see how this PrimeTel Cyprus IPO performs in the markets. Table of Contents

Safe Bulkers IPO

A shipping company from overseas is expected to hit the stock markets very soon. The Greek Shipping company, Safe Bulkers, is all set to list on the NYSE or New York Stock Exchange, with its proposed IPO or Initial Public offering.
Safe-Bulkers-IPO
What is the expected size of the Safe Bulkers IPO?
The Safe Bulkers IPO is expected to raise money in the range of 190 million US Dollars.

How many shares of Safe Bulkers will be sold through the IPO?
A total of 10 million shares will be sold through the Safe Bulkers IPO.

What is the price of the Safe Bulkers IPO shares?
The Safe Bulkers IPO shares have been priced at $19 per share. It is 1 dollar less than the expected low price range of the Safe Bulkers IPO. Initially, it was expected that Safe Bulkers IPO will be priced in the range of $20 to $22 per share, hence a price of $19 per share may prove to be a bargain for the investors.

What are the business valuations and market outlook for the Safe Bulkers IPO?
The company, Safe Bulkers ships bulk cargoes, particularly grain, iron ore and coal, on worldwide routes.

Who are the underwriters of the Safe Bulkers IPO issue?
Merrill Lynch & Co, Credit Suisse, Jefferies & Company, Dahlman Rose & Co, Poten Capital Services LLC and DnB NOR Markets as underwriters.
The shares of Safe Bulkers IPO will be listed on the New York Stock Exchange under the symbol "SB".
Let’s see how this Safe Bulkers IPO performs in the markets. Table of Contents

China Taisan Technology IPO

One more Chinese IPO is set to hit the Singapore Stock Markets. A fabric manufacturing company, China Taisan Technology is planning to list on the stock exchanges in Singapore.China Taisan Technology IPO

What is the size of the China Taisan Technology IPO?
The China Taisan Technology IPO is expected to collect money in the range of S$55.9 million (or USD $41 million)

What are the business valuations and market outlook for China Taisan Technology IPO?
The firm has strong market outlook. It supplies to big customers like Nike and Adidas for their footwear and apparel industry. Hence, the fundamentals of the company are strong from the client’s perspective.

How many shares of China Taisan Technology will be offered for sale through the IPO?
A total of 233 million shares will be offered for sale through the China Taisan Technology IPO.

What is the price of share for China Taisan Technology IPO?
The shares of China Taisan Technology IPO are priced at S$0.24 per share.

Where will the IPO proceeds be used by China Taisan Technology IPO?
China Taisan said it expects to raise S$49.4 million in net proceeds and use about S$38.2 million to purchase new equipment and the rest as working capital and for expansion.
Daiwa Securities SMBC Singapore is the manager, underwriter and placement agent for China Taisan's initial public offering. Let’s see how this China Taisan Technology IPO performs in the markets. Table of Contents

Tarnow IPO Poland

The Polish stock markets will soon see another IPO or initial Public Offering. The IPO belongs to the Polish state-controlled company chemicals and fertiliser maker Zaklady Azotowe Tarnow.
Tarnow IPO Poland
What is the expected size of the Poland Tarnow IPO?
The Poland Tarnow IPO will be approximately 300 million zlotys ( or US $139 million) worth.

When will the Poland Tarnow IPO open for subscription/application?
Poland Tarnow IPO will open for subscription on June 30th, 2008

How many shares will be sold through the Poland Tarnow IPO?
Tarnow plans to issue 16 million new shares, raising the number of all outstanding shares to 40 million. This will bring down the government controlled Treasury's stake to 60 percent.

Where will the IPO proceeds or capital raised be used by Poland Tarnow IPO?
As per the prospectus of IPO filing, Poland Tarnow IPO plans to use the proceeds to modernise and expand its installations to boost output.

What is market outlook and business valuations of the Poland Tarnow IPO?
The IPO is betting on the increasing demand of fertilizers across the globe. Fertiliser shares worldwide have broken records this year as farmers demand more soil nutrients at a time of short supply. Hence, it is expected that the business of Poland Tarnow IPO will nurture big benefits to the investors.
State-controlled Tarnow's IPO is set to be one of the largest privatisations on the Warsaw bourse this year. The Treasury has said 2008 privatisation revenue could range from 2.3 billion zlotys to around 5 billion.
Let’s see how this IPO from Poland Tarnow performs in the markets. Table of Contents

Oil prices historical data chart

We have been hearing a lot of volatility about the oil prices. The opposing predictions are coming to the fore.

Some “experts” say that oil prices will shoot upto to $200 per barrel. Others say that oild prices will come down to $90 to $100 range by the end of thins year. Then there are those intermediaries who always maintain a middle view. They say that oil MAY touch $200 a barrel before cooling off to the range of $90 to $100 range. Who has seen the future of oil prices?

But how have the oil prices figured in the past? Have they consistently increased? Wikipedia provides an answer.

Here is a historical chart displaying the prices of oil per barrel over a really long period of time – from 1861 to 2007. Though the chart limits itself to 2007, but we all know that oil prices have been trading in the range of $130 per barrel presently.

Oil prices historical data chart

So what can be concluded for the future? I don’t know, but look at the graph above. Every sharp increase in the oil prices is followed by a decline. The case of 1973 to 1986 is a 13 year long horizon. People who have seen the oil prices during these times have witnessed the problems with oil.
During this period, US imposed several restrictions for selling its limited capacity of oil. Like vehicles with odd number registration plates will get oil only on odd dates, and vice versa. A limit was set on the amount of oil one can buy. Both European and US motor industry took the hit during the oil crisis and small, compact cars with high fuel economy were introduced to the markets. This was the time when US motor giant like Chevrolet and GM booked major losses, as their vehicles were major gas consumers and low on fuel efficiency. That was the period when Toyota and Honda from Japan took over the US motor markets with their fuel efficient cars.
Critics also say that this period led to the foundation of the Gulf War and invasion of Iraq, to get major control over the oil rich Iraq, so as to remove the oil dependency. No one knows how oild prices will perform in the coming times. Table of Contents

OGX Petroleo e Gas IPO

It’s time for some action in the Brazilian Stock Exchanges. There is a new IPO or initial public offering planned for the OGX Petroleo e Gas Participacoes SA by the Brazilian billionaire Eike Batista.
OGX Petroleo e Gas IPO
What is the size of the OGX Petroleo e Gas IPO?
The OGX Petroleo e Gas IPO is expected to raise around 5.59 billion real which will be equivalent to USD 3.37 billion.

How many shares of the OGX Petroleo e Gas IPO will be offered for sale through the OGX Petroleo e Gas IPO?
A total of 4.95 million shares will be offered for sale by the OGX Petroleo e Gas IPO. The shares will be sold both in Brazil and overseas.

What is the price range or price band of the OGX Petroleo e Gas IPO shares?
The OGX Petroleo e Gas IPO shares will be offered in the price range of 883 reais to 1,131 reais. OGX may increase the offer by 15 percent and sell another 741,807 shares worth as much as 839 million reais.

What are the business valuations of OGX Petroleo e Gas IPO?
This OGX Petroleo e Gas IPO is betting on the country's recent oil finds which are expected to lure investors.
Batista, Brazil's richest man, is bucking a trend of IPO cancellations this year in Brazil, home to the world's best- performing equity market. Only the U.S. canceled more IPOs than Brazil. Interest in Brazilian offshore oil soared after the announcement of the Tupi field, the largest Western Hemisphere oil find in three decades, and the possibility of 33 billion barrels in the Carioca field.
Let’s see how this IPO from OGX Petroleo e Gas performs in the markets. Table of Contents

Orbit Garant IPO Canada

The Canadian markets may be witnessing problems, but that is not going to stop the IPO of Orbit Garant, which is a big large Canadian-based drilling company servicing the mining industry.
Orbit Garant IPO
The Orbit Garant IPO or initial Public offering is expected to hit the Toronto Stock Exchange very soon, despite the volatile stock markets.
What is the size of the Orbit Garant IPO?
The Orbit Garant IPO is expected to raise a total of C$60 million.

What is the business of Orbit Garant?
Orbit, offers underground and surface drilling services through its 116 drilling rigs. The company was created in 2007 from the acquisition of Forage Orbit Inc. by Forages Garant & Freres Inc.

What is the price range or price band of the Orbit Garant IPO?
The price band for the Orbit Garant IPO is set in the range of C$5 to C$ 5.75 per share.

Where will the fund raised from the Orbit Garant IPO be used?
Proceeds from the offering will be used to pay off the company's existing credit agreement, the purchase price, working capital and for other adjustments in connection with the agreement for the acquisition of Forage Orbit.

Is it the right time for Orbit Garant IPO to come to the stock markets?
Experts say no. The reason is that the recently concluded Sprott IPO, which was heavily oversubscribed is trading below its IPO offer price. It is the first time in last seven years that the Canadian markets have seen a downtime. However, Orbit Garant IPO has a strong backup in the backdrop of the rising metal prices and minig sector in the commodities markets. It has prestigious client list which includes - Goldcorp Inc. (GG), Xstrata PLC ( XTA.LN), Iamgold Gold Corp. (IMG) and Agnico-Eagle Mines Ltd. (AEM).

What are the business valuations of the Orbit Garant IPO as compared to other similar companies?
A typical example that can be cited is that of the Forbes Energy Services Ltd. Riding the wave of rising and record-setting crude prices, the Texas-based company, a provider of drilling services to oil and gas companies primarily operating onshore in Texas, priced its IPO of 21.4 million shares late last week at C$7 a share for a total of C$ 150 million, making it one of the biggest IPOs so this year in Canada.
If one goes by that performance specific to the sector, then the Orbit Garant IPO will surely be one of the best investments one can make. Also to note that investing in such turbulent times for a long horizon of 5 to 10 years will ensure that investors get the stock for cheap and reap the benefits in the long run.
Let’s see how this IPO from Orbit Garant performs in the markets. Table of Contents

Research Stocks with Google Finance Stock Screener: Nice tool

Say you want to do some research before you could buy your desired stock. The research can be anything. Say you want to know which stocks are available in the market which have the price to earnings or PE ratio between 10 and 20. Or you may like to know which stocks have paid a dividend with a yield in the range 10% to 15%. How would you search for such data?

One option is to download all the data from the exchange website and using tools in excel sheet and putting macros, formulas, etc. try to sort out the things that you need. But the effort will be huge and most importantly, you will not be able to get all the required data.

At this point, the Google Finance Stock Screener comes to your rescue. It provides an excellent user friendly interface which allows you to specify the values for range in which you wish to get the stock list. There is an option to specify the values in the text boxes, as well as you have the option to drag the sliders to set the range.

The resulting stock list which meets the set criteria is then displayed instantaneously in the lower part of the webpage.

Then, there are numerous other options available for setting the criteria. Also, you can then select the sector in which you wish to invest, and only the companies belonging to that sector will be displayed. Then, next to it, you can select the exchange as well, and only the companies trading on that particular exchange will be listed.

A neat tool, for anyone who wishes to look for data and conduct research on stocks. Presently supports on US stock exchanges, AMEX, NADSAQ and NYSE only. Hope to see more global exchanges being added very soon. Table of Contents

ETF of ETFs: Invesco PowerShares

The investment world keeps looking out for enormous and endless opportunities. New products are created every now and then.
ETF of ETFs
I had introduced the concept of Fund of Funds in this article, and now, there are new financial products called ETF of ETF’s.

Basically, what these new ETF products will do is simply invest in other ETFs.
In the US, Invesco PowerShares Capital Management LLC has launched three exchange traded funds that invest solely in other ETFs. The funds — the PowerShares Autonomic Balanced NFA Global Asset Portfolio, PowerShares Autonomic Balanced Growth NFA Global Asset Portfolio and PowerShares Autonomic Growth NFA Global Asset Portfolio — are each pegged to an index of ETFs maintained by New Frontier Advisors LLC of Boston.

Now this is an interesting development. Be it fund of funds or be it ETF of ETF’s. The underlying concepts remain the same. Like a retail investor can on his own create a fund of funds by investing in his choice of funds, in the same way investors can create their own ETF collection. However, this ETF collection will be slightly different from the fund of funds.

The advantage with ETF’s is that you can trade them in real time on the stock exchanges as shares. So when you attempt to create ETF of ETF on you own, you do not have the liberty to execute the buy-sell orders for all the ETF in your portfolio. Hence, this is the place where the ETF of ETF will help you. Buying or selling one unit or share of ETF of ETF will ensure that you can actually trade in multiple ETF’s.

However, this liberty comes at a price. The investment cost price is relatively high. Including the cost of the underlying ETFs, the three ETF-of-ETFs will have expense ratios that run from about 0.75% to 0.86%, according to their prospectuses. Compare this to the actual ETF, the cost may be just 0.21%.
It’s a new product and it will take some time to see whether the investors really like this concept of ETF of ETFs. The biggest problem here is with the high cost of investment. Table of Contents

Quantum Index Fund (QIF ETF) Review

The Quantum Asset Management Company has come out with another Exchange Traded Fund. Seems like all the AMC are now aware of the benefits of Exchange Traded Fund (ETF’s). At the same time, the investors are now becoming aware of this efficient mode of investments and hence the asset management companies are trying to capitalize on this new ETF product boom. Quantum Index Fund QIF ETF
The latest one to join the bandwagon is the Quantum AMC, which has come out with its latest ETF offering in the name of Quantum Index Fund (ETF).
What is Quantum Index Fund (ETF) and which benchmark index will it be tracking?
The Quantum Index Fund (QIF) is an Open Ended Fund, which will be listed on the National Stock Exchange in the form of an Exchange Traded Fund (ETF) tracking the S&P CNX Nifty Index.

What are the issue open dates for the NFO period of Quantum Index Fund (QIF ETF)?
Applicants can apply for this Quantum Index Fund (QIF ETF) between 9th June and 20th June 2008.

What are the charges and management fee for Quantum Index Fund (QIF ETF)?
The investment management fee for the QIF is 0.25% and the total estimated expense ratio is 0.75% per annum, one of the lowest in India – as claimed by Quantum AMC.

What are the entry load and exit load for Quantum Index Fund (QIF ETF)?
There are no entry load and exit load charges. Once the ETF shares of Quantum Index Fund (QIF ETF) start trading, the standard brokerage will apply and that will depend upon your broker.

Related: Reliance Banking Exchange Traded Fund RBETF: ETF   Kotak Sensex ETF,   ETF: An example with returns calculations,  Simplest way to Invest in ETF,  Gold ETF

How will be the asset allocation in Quantum Index Fund (QIF ETF)?
90% to 100% of the money will be allocated to the stocks covered in S&P Nifty index. Remaining 0% to 10% will be in the cash money market instruments for liquidity purpose.

What is the minimum investment values for Quantum Index Fund (QIF ETF)?
Minimum investment of Rs. 5,000 and further in multiples of Rs. 1,000 are accepted in Quantum Index Fund (QIF ETF)

Any tax benefit available within Quantum Index Fund (QIF ETF)?
No tax benefit is vailable within Quantum Index Fund (QIF ETF).

Any SIP or Systematic Investment Plan scheme available within Quantum Index Fund (QIF ETF)?
No SIP plan is available within Quantum Index Fund (QIF ETF). But it will be easier for investors to invest by buying shares of Quantum Index Fund (QIF ETF) as per their own convenience.

How to apply for Quantum Index Fund (QIF ETF) during the NFO period?
Quantum Mutual Fund follows a direct-to-investor approach. During the NFO, investors can download the application form from Offical Quantum Site (PDF file in New Window). You can also call on toll free number 1-800-22-3863(BSNL/MTNL) or 022-22829414 and request the application form. Email: Info@QuantumAMC.com and postal address:
Quantum AMC Pvt. Ltd., #107, 1st Floor, Regent Chambers, Nariman Point, Mumbai 400021
Application forms are also available at designated offices of HDFC Bank,Deutsche Bank,BNP Paribas and PersonalFn.
Apart from the fund management charges, this scheme appears to be an excellent one where there are no entry or exit loads. Investors having faith in Quantum AMC can bet their money on Nifty for a long term. Table of Contents

Chongqing Machinery IPO Hong Kong

The stock markets in Hong Kong seems to witness a flood of IPO’s. Recently, Chenming Paper Holdings declared its IPO and now, its Chongqing Machinery & Electronics which has come out with IPO plans. Chongqing IPO HongKong
What is the price range of Chongqing IPO?
The expected price range or price band of the Chongqing IPO is HK$1.3 to HK$1.7.

What is the primary business and valuations of Chongqing Machinery & Electronics?
The Chongqing company is a Machine tool maker. The proceeds will primarily be used to update technology, boost production and fund acquisition.

What is the expected size of the Chongqing IPO?
The Chongqing IPO plans to raise around US $129 million by listing on the Hong Kong stock exchange.

How many shares will be offered for sale through the Chongqing IPO?
The Chongqing Machinery company plans to offer a total of one billion new shares, accounting for 27.3% of its market capital

What are the application / subscription dates for Chongqing IPO?
The IPO application dates for Chongqing Machinery IPO are between May 26th to June 5, 2008. The shares of Chongqing Machinery company will be listed on the Hong Kong Stock exchange on June 13th, 2008.
Credit Suisse Group is the sponsors of the deal. Let’s see how this Chongqing Machinery IPO performs in the Hong Kong Markets. Table of Contents

Chenming Paper IPO HongKong

Another IPO is set to hit the HongKong market. The Chenming Paper Holdings is planning to come out with its IPO or initial public offering very soon.Chenming Paper IPO HongKong
What is the size of the Chenming Paper IPO?
The Chenming Paper IPO from HongKong plans to raise upto $538 million from its initial public offering or IPO.

How many shares will be sold through the Chenming Paper IPO?
A total of 355.7 million shares will be sold by the Chenming Paper IPO in its HongKong listing IPO.

What is the price range of the Chenming Paper IPO shares?
The shares of Chenming Paper IPO are priced in the range of HK$9 and HK$11.80 per share.

What are the fundamental indicators and business valuations of the Chenming Paper IPO?
At the given price range, the Chenming Paper IPO shares have a price to earnings multiple of 9.6 to 12.6 times based on its 2008 earnings forecast.
Chenming Paper will be the first company with three types of shares -- yuan-denominated A shares, foreign currency B shares and Hong Kong-listed H shares -- listed on the exchange.
Macquarie and Guotai Junan are the sponsors of the deal. Let’s see how this IPO from Chenming Paper performs in the HongKong Markets. Table of Contents

Synnex IPO Thailand

The stock markets in the eastern Asia is buzzing with IPO’s. The technology firm, Synnex from Thailand, is all set to come out with an IPO or initial public offering. Synnex IPO Thailand
Synnex is an affiliate of Taiwan's Synnex Technology

What is the size of the Synnex IPO?
The Synnex IPO from Thailand is expected to raise around 522 million baht ($16 million) from the IPO or initial public offering.

When will the Synnex IPO Thailand open for subscription?
The Synnex IPO from Thailand is expected to open in the next month of June, between 4th and 6th June, 2008.

What is the price of Synnex IPO?
The Synnex IPO shares have been priced at 2.9 baht per share. The indicative price range was 2.9-3.3 baht and hence the shares of Synnex IPO have been priced at the lower side of the price band.

What is the business valuation of Synnex IPO?
Synnex sells computers, software and information technology systems.
T.K.S. Technologies TKS.BK, a Thai digital printing and IT firm, owns 50 percent of the firm, while Synnex Technology, the world's No. 3 electronics distributor, indirectly holds 49 percent via its investment arm King's Eyes Investments Ltd.

What are the shareholding pattern of Synnex IPO from Thailand?
T.K.S.'s holding will be diluted to 35 percent and those of Synnex Technology to 34 percent after the IPO, which would raise Synnex (Thailand)'s registered capital to 705 million baht from 500 million baht, it said.
Synnex (Thailand) plans to sell 180 million new shares, or 25.53 percent, of which 57 million shares are to be offered to T.K.S. Proceeds from the share sale would be used to finance its expansion
Capital Nomura Securities CNS.BK being financial adviser and lead underwriter. Let’s see how this IPO from Synnex Thailand performs in the Italian Markets. Table of Contents

IMMIT IPO: Italy

A new IPO is expected to hit the Italian markets very soon. It’s the IMMIT or the Immobili Italiani SpA., which is planning to come out to the primary markets with its IPO plans.
IMMIT IPO Italy
The company belongs to the real estate investment sector and manages much of the property portfolio of its owner Intesa Sanpaolo SpA
What is the price range of the IMMIT IPO?
Price range of the IMMIT IPO from Italy is set to be between 2.9 Euros to 3.6 Euros per share.

What is the market valuation of the IMMIT IPO?
Based upon the price range, the market valuations of the IMMIT or Immobili Italiani SpA comes out to be around 1.05 billion Euros.

How many shares will be offered for sale through the IMMIT IPO?
A total of 148.396 million shares, or 51 percent of the company, will be sold through the IMMIT IPO. The IMMIT IPO includes a retail offer of 44.517 million shares

Is there any greenshoe option available with IMMIT IPO?
Yes. The IMMIT IPO comes with a greenshoe option. If a greenshoe option of 18.549 million shares is exercised a total of 57.4 percent of IMMIT capital will be on the market.
Also, the company will offer one bonus share for every 20 shares owned by shareholders who keep the shares for at least one year.

What are the subscription dates of the IMMIT IPO?
The IMMIT IPO will begin on May 26 and end June 5, 2008.
IMMIT said the final price will be communicated by June 7 and the company expects to debut on the Milan stock exchange on June 11.
Banca IMI and Lehman Brothers are the lead managers for the IMMIT IPO issue. Let’s see how this IPO from IMMIT performs in the Italian Markets. Table of Contents

Lotus India Banking Fund Review

The Lotus India Asset management company has come out with its latest offering. The name of the newly launched fund is “ Lotus India Banking Fund”.
Lotus India Banking Fund

What is the investment objective of the Lotus India Banking Fund?
The investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities of companies engaged in the business of banking and financial services.

How will the investors money be invested by the Lotus India Banking Fund?
The Lotus India Banking Fund will invest 65-100% in equity and equity related instruments of the constituents of CNX Bank Index, 0- 35% in equity and equity related instruments of banking and financial services companies other than the constituents of CNX Bank Index and 0-35% in debt and money market instruments.

What are the subscription dates for Lotus India Banking Fund?
The Lotus India Banking Fund is open for application between 19th may 2008 to 17th June 2008. Investors can apply for units during these dates.

What is the price of each unit of Lotus India Banking Fund?
The standard value of Rs. will be taken per unit of Lotus India Banking Fund during the NFO period.

What is the entry load and exit load for Lotus India Banking Fund?
Entry Load : Retail Plan - 2.25% if purchase amount is less than Rs. 5 Crores. Institutional Plan - NIL

Exit Load : Retail Plan – 1% if redeemed on or before the expiry of 6 months from the date of allotment (including the date of allotment) or 0.6% if redeemed after 6 months and on or before the expiry of 1 year from the date of allotment (including the date of allotment). Institutional Plan – NIL

Related: Kotak Sensex ETF,   Reliance Banking Exchange Traded Fund (RBETF),   Lotus India Agile Fund

What are the valuations and analysis of Lotus India Banking Fund?
Lotus India AMC said, “From a Banking and Financial Services perspective, India is an under penetrated market. This offers tremendous growth potential for this sector .Consistent and high economic growth in India over the recent past has led to robust growth in banking assets. Further, the Indian Banking and Financial Services sector has largely been unaffected by the global credit crisis due to its strong fundamentals

What is the minimum application amount for Lotus India Banking Fund?
Minimum Application Amount : Retail - Rs. 5000/- per application and in multiples of Re. 1/- thereafter. Institutional – Rs. 5 Crores per application and in multiples of Re.1/- thereafter.

Risk in Lotus India Banking Fund?
The biggest risk is that it is concentrated only on the banking sector. Hence, if investors are lucky, they may get a real good bargain when the banking sector is down. Else, they may take a hit by buying high and then the banking sector going down. Table of Contents

MCX IPO: Multi Commodity Exchange IPO

Very recently, it was the Mexican Stock Exchange which came out with its plans for an IPO. And now, the Indian counterpart, the MCX or the Multi Commodity Exchange of India is planning to come out with its proposed IPO.
MCX IPO Multi Commodity Exchange IPO
When will the MCX IPO hit the markets?
There is no information available at the moment about the precise dates of listing of the MCX IPO.

What is the size of the MCX IPO?
The public issue of the MCX IPO will constitute a sale of around 10 million shares with a face value of Rs. 5 each. The IPO would comprise fresh issue of 6-million shares and another 4-million shares is to be sold by Financial Technologies (India) Ltd and Corporation Bank.

How much money will be raised by the MCX IPO?
The MCX IPO is expected to raise Rs 500 crore-Rs 600 crore.

What is the price band of MCX IPO shares?
The MCX IPO shares will be sold in the price band of Rs. 500 to 600 per share.

What are the business valuations and market standings of the MCX IPO?
As per Hindu, Currently, MCX enjoys market leadership, with a share of 77 per cent in volumes traded on commodities exchanges in India. The company has consciously focused on commodities such as bullion, energy and metals, which are benchmarked to international prices, Crisil said. Of the company’s total turnover, bullion accounts for 53 per cent, metals for 28 per cent, energy for 16 per cent and agricultural commodities account for the rest.

What are the financial results of the MCX Exchange?
For the year ended March 31, 2007, MCX reported a net profit of Rs 93 crore on a turnover of Rs 200 crore, compared with a net profit of Rs 37.50 crore and revenues of Rs 100 crore in the previous year.

Any ratings assigned to the MCX IPO?
The MCX IPO has come out very strong on the ratings part. Rating agency Crisil awarded MCX initial public offering (IPO) at the highest grade of 5/5. The grade indicates that the fundamentals of the issue are strong, relative to other listed equity securities in India. However, the rating is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. It is neither a trading recommendation, nor a comment on the future market price or its suitability.
Apart from MCX, Acme Tele Power is the only company to receive the highest rating.
MCX’s profitability and return indicators have been strong in the past 4 years. Growth is likely to moderate in the short-term due to the impact of the commodity transaction tax (CTT), Crisil said.
However, in the medium term, MCX’s strong market position and continuous focus on product innovation would act as growth drivers. Let’s see how this IPO from MCX Exchange performs in the market once it opens up for subscription. Table of Contents

Russian Railways IPO

Another IPO is set to hit the Russian markets. The state owned Russian Railways is planning to come out with an IPO or Initial Public Offering.
Russian Railways IPO

What is the size of the Russian Railways IPO?
State Rail monopoly Russian Railways could hold an initial public offering to raise around USD 25 billion for 25% of its stock.
When will the Russian Railways IPO open for subscription?
No dates have been finalized about the Russian Railways IPO.

What are the other developments of Russian Railways IPO & the company?
In addition to the IPO, the company plans to issue Eurobonds totaling USD 3 billion to USD 4 billion in October to November 2008. RZD will also float ruble denominated bonds worth RUB 20 billion in July.

What are the business valuations and markets standings of the RZD Russian Railways ?
RZD handles about 83% of all freight in Russia and carries 1.3 billion passengers and 1.3 billion tonnes of cargo annually.

The company has charter capital of RUB1,535 billion.
Let’s see how this IPO from Russian Railways performs in the market once it opens up for subscription. Table of Contents

Little Sheep Chinese Restaurant IPO: HongKong

Another IPO is coming to the Hong Kong Markets. Chinese hot pot restaurant Little Sheep Group Limited is expected to hit the stock markets through an IPO or initial public offering
Little Sheep Chinese Restaurant IPO
What is the size of the Little Sheep IPO?
The Little Sheep IPO plans to raise around $105.7 million in a Hong Kong initial public offering.

How many shares will be offered for sale through the Little Sheep IPO?
A total of 224 million shares will be offered for sale through the Little Sheep IPO.

What is the price band of the Little Sheep IPO shares?
The Little Sheep IPO shares have been priced in the price range of HK$2.68-HK$3.68 per share.

What are the business valuations and market standings of the Little Sheep Group?
Private equity firm 3i Group Plc has a big stake. Merrill Lynch and Deutsche Bank DBKGn.DE are sponsoring the deal.
Let’s see how this IPO from Little Sheep Group performs in the market once it opens up for subscription. Table of Contents

Wah Kwong Maritime Transport IPO

Wah Kwong Maritime Transport IPO
Another IPO is coming to the Hong Kong Markets. The Hong Kong bulk and tanker shipping company Wah Kwong Maritime Transport Holdings Limited is expected to come out with its IPO or initial public offering.

What is the size of the Wah Kwong Maritime Transport IPO?
The Wah Kwong Maritime Transport IPO plans to raise aroung $163.5 million $ through its IPO.

How many shares will be sold through the Wah Kwong Maritime Transport IPO?
A total of 125 million shares are expected to be sold through the Wah Kwong Maritime Transport IPO. This constitutes 25% stake of the company.

What is the price band of Wah Kwong Maritime Transport IPO shares?
The Wah Kwong Maritime Transport IPO shares are prices in the range of HK$7.78-HK$10.20 each.

What are the business valuations and financial market standings of the Wah Kwong Maritime Transport Company?
The Wah Kwong Maritime Transport company is one of the oldest bulk shipping firms of Hong Kong. Wah Kwong's predecessor, Wah Kwong Shipping, had been listed in Hong Kong in 1973, but after a period of share price weakness, was delisted and taken private in 2000.
Cazenove is sponsoring the deal.

Let’s see how this IPO from Wah Kwong Maritime Transport performs in the market once it opens up for subscription. Table of Contents

Mexican Stock Exchange IPO

Another company is expected to hit the stock markets through the IPO route. The Mexican Stock Exchange IPO or initial public offering is expected to come to the markets this summer.
Mexican Stock Exchange IPO

In which markets will Mexican Stock Exchange IPO list its shares?
As per the news, the stocks are to be listed in its home market of Mexico as well as in the USA.

What is the size of the Mexican Stock Exchange IPO?
The Mexican Stock Exchange IPO is expected to raise money in the range of 4.6 billion Mexican Peso or around 445 million USD.

How many shares will be sold through the Mexican Stock Exchange IPO
A total of 121 millions shares of the Mexican Stock Exchange will be sold through the IPO in the Mexican capital markets. Another 158 million shares will be sold in the US markets.

What is the price range of shares of Mexican Stock Exchange IPO?
The Mexican Stock Exchange IPO shares are priced in the price band 14 pesos ($1.35) to 19 pesos.

When will the Mexican Stock Exchange IPO shares be listed on the exchanges?
The exchange foresees pricing to occur on June 12, with trading to begin in the following session.

What are the financial holdings and news about Mexican Stock Exchange IPO?
Bolsa Mexicana de Valores, or BMV, is the organization which is managing the Mexican Stock Exchange. BMV, whose shareholders approved plans for an IPO in March, runs the country's sole stock market and operates a derivatives exchange.
The Mexican unit of Spanish firm Banco Bilbao Vizcaya Argentaria UBS, , ) will act as lead managers.
BMV's IPO would add to the number of Latin American exchanges that have gone public recently.

What are the business valuations and financial standings of the Mexican Stock Exchange IPO?
Bovespa Holding SA, operator the Sao Paulo Stock Exchange, and Bolsa de Mercadorias & Futuros, a commodities and futures exchange, each launched IPOs last year. Shares of Bolsa de Valores de Colombia began trading in June 2007.

Stock exchanges offer one of the safest investments as their business in only in transaction processing. Mexican Stock Exchange is the sole exchange in the country and it is expected to give good returns in the long run. Table of Contents

Boing lay off: Boing Job cut: to fire 750 employees

Boing lay off
It is official news now. Boeing Company has plans to lay off or fire about 750 employees.

The lay off by Boeing will be mostly in El Segundo and Seal Beach.

The company management cites the reasons of downturn in the company's satellite manufacturing business and the recent loss of a major contract to a rival.

Employees at the two facilities were told Tuesday of the plans.
As per the news, about 100 employees will receive the 60-day layoff notices this week, with another 650 to be notified at the end of June, Boeing said.
Boeing did not say how the jobs losses will be distributed between the two sites.
It is learnt that the lay offs will be primarily in the area of engineering. The restructuring will leave Boeing Space and Intelligence Systems, Boeing's satellite division with about 6,450 employees, compared with its present count of 7,200.
About 5,500 people currently work in El Segundo.
Lay off wreck lives. No doubt about that. But the company management has its own limitations. Hope to that the unfortunate individuals find a suitable job elsewhere. Table of Contents

Niraj Cement IPO Review

The IPO market in India continues to remain hot – not in terms of the returns, but in terms of the number of companies coming to the primary market for listing their shares and collecting money from investors.
Niraj-Cement-IPO
A cement, engineering and construction company, Niraj Cement Structurals (Official Site), is coming to the markets with its IPO for raising capital.
Niraj Cement Structurals, an engineering and construction company, will enter the capital market with an initial public offering or IPO

What is the size of the Niraj Cement IPO?
A total of 32,50,000 equity shares will be offered for sale through the Niraj Cement IPO. The issue would constitute 31.42% of the total post issue paid-up equity capital of the company.

What is the price band of the Niraj Cement IPO?
The Niraj Cement IPO shares will have a face value of Rs. 10 per share and the price band for the Niraj Cement IPO has been fixed in the range of Rs 175-Rs 190 per equity share. The issue price is 17.5 times the face value at the lower end of the price band and 19 times the face value at the higher end of the price band.

When will the Niraj Cement IPO issue open for subscription and application?
The investors can apply for the Niraj Cement IPO shares between May 26th and May 30th, 2008.

Is there any reservation of shares for employees in Niraj Cement IPO?
Yes. There is a reservation for eligible employees of 3,25,000 equity shares and net issue to the public of 29,25,000 equity shares

Any ratings assigned to the Niraj Cement IPO issue?
The issue has been graded by CARE and has been assigned the ‘CARE IPO GRADE 1’.

Which exchange the shares of Niraj Cement IPO be listed?
The equity shares offered through this issue are proposed to be listed on the BSE.
The book running lead manager to the issue is Allbank Finance Limited and Intime Spectrum Registry Limited is registrar. Table of Contents

Bafna Pharma IPO Review

The IPO market in India continues to remain hot – not in terms of the returns, but in terms of the number of companies coming to the primary market for listing their shares and collecting money from investors. Bafna-Pharma-IPO

A pharmaceuticals company, Bafna Pharmaceuticals (Official Site) Ltd is planning to enter the capital markets.

What is the size of Bafna Pharma IPO?
A total of 64,00,000 equity shares will be offered for sale through the Bafna Pharma IPO. The issue to the public would constitute 40.05 per cent of the post issue paid-up capital.

What is the price of each share of Bafna Pharma IPO?
The Bafna Pharma IPO share will have a face value of Rs. 10 and will be offered for cash at a premium of Rs. 30 per share.

When will the Bafna Pharma IPO open for subscription?
The Bafna Pharma IPO will accept applications between May 27 and May 30, 2008

Where will the IPO proceeds be used for Bafna Pharma IPO?
Proceeds from the IPO would be utilized towards brand building in the domestic and international markets. Bafna would also strengthen its R&D facility at Grantlayon plant, besides getting MHRA certification. It also proposes to retire high-cost debts.

What are the business valuations and financial results of Bafna Pharma?

As per ET,The Chennai-based company is engaged in the manufacturing of Betalactum and non- Betalactum pharmaceutical formulations in tablets, capsules and liquid forms. Bafna manufactures 126 formulations under various therapeutic segments such as anti-infectiv, cholesterol lowering agents, analgesic and antipyretic, antihelmintics, appetite stimulants, cough and cold preparations, anti-ulcerants and anti diabetic, vitamins.

The company has a WHO-GMP certified manufacturing facility at Madhavaram, which is a 100 per cent export oriented unit that caters to the markets of Sri Lanka, Ghana and Ukraine. Bafna has obtained 336 product licenses and has 65 products registered in various countries such as Sri Lanka, Ukraine, Ghana and Lao.
Investors who believe in pharma stocks performance can bet their money on this Bafna Pharma IPO.
Let’s see how this Bafna Pharma IPO performs in the markets!
Table of Contents

Metalloinvest IPO Russia

Another iron ore firm and steel company from Russia is planning an IPO or initial public offering.
Metalloinvest-IPO-Russia
Metalloinvest, a Russian iron ore and steel company owned by billionaire Alisher Usmanov, is planning to come out with an IPO.
What is the size of the Metalloinvest IPO?
The Metalloinvest IPO plans to raise around $7.5 billion dollars. This amount is based upon the news that initially, the Metalloinvest IPO had plans to sell 10% stake for raising $3 billion. While now, the existing shareholders are learnt to sell another 15 percent stake.

What is the total stake of Metalloinvest IPO?
A total of 25% shares of Metalloinvest IPO will be sold through the IPO.

When is the Metalloinvest IPO expected to open for subscription?
Though no dates are finalized, it is learnt that the Metalloinvest IPO will hit the markets in autumn this year.

Who are the lead underwriters or book running lead managers for the Metalloinvest IPO issue?
Merrill Lynch, Credit Suisse, Deutsche Bank and Renaissance Capital will be underwriting the Metalloinvest IPO.

Which markets will the Metalloinvest IPO listing take place?
The Metalloinvest IPO may list either on London Stock Exchange or the New York Stock Exchange.

What are the business valuations and financial results of Metalloinvest IPO?
Metalloinvest manages the assets of holding group Gazmetall, which includes Russia's two largest iron ore mines and two steel mills that rank the company fifth in terms of output.
Metalloinvest is 50 percent owned by Usmanov, with two other Russian businessmen, Andrei Skotch and Vasily Anisimov, holding 30 and 20 percent, respectively.
Let’s see how this Yandex IPO performs in the markets!
Table of Contents

Yandex IPO: Russian Internet firm’s New York IPO

Google may be the most active search engine in the world, but in Russia, it Yandex which rules. Russian biggest internet firm, Yandex plans to come to the stock markets and list itself on the New York Stock Exchange or NYSE through an IPO or Initial Public Offering.
Yandex-IPO-Russia

What is the size of the Yandex IPO?
Yandex IPO plans to raise around $1.5 billion to $2 billion through its initial public offering.

What are the business valuations of Yandex ?
As per the sources, the initial valuations of Yandex IPO place the valuation at around $5 billion.

Who are the lead underwriters for the Yandex IPO issue?
Morgan Stanley, Deutsche Bank and Renaissance Capital will be the lead underwriters of the Yandex IPO issue which will list on NYSE.

What are the market performance and financial results of Yandex?
Yandex was founded in 2000 by Arkady Volozh and Ilya Segalovich, who own around 30 percent. Yandex receives about twice as many searches in Russia per day than Google

When will the Yandex IPO hit the stock markets?
The Yandex IPO will come to the markets sometimes during the fall season this year.

Let’s see how this Yandex IPO performs in the markets!
Table of Contents

Maruti Car Price Hike: Maruti increases car prices

Due to the increasing input costs, it is learnt that Maruti Suzuki has increased the cost of its cars significantly.
Maruti-Car-Price-Hike
The hike in the car prices have come in the range of Rs. 1,000 to Rs. 18,000, based upon the different segment and size of the Maruti Cars.

Almost all the cars in the petrol segment have witnessed the price hike. The Swift Desire will now cost around 18,000 Rs. more than the previous prices. Initially this car was available in the range of 4.49 to 6 lakhs Rs.

Related: Bajaj reduces two wheeler prices

Swift, Gypsy and SX4 will now be costlier by 9,000 Rs. whereas the diesel variant of the Swift model will be costlier by 15,000 Rs.

Zen Estillo & Wagon R LPG will become costlier by 1,000 Rs. whereas the other small cars like Alto and Maruti 800 will see more price hike – of 1500 Rs. per car. Maruti Omni and Wagon R Petrol will see a price increase of Rs. 2000 each. Maruti Versa will also become costly by 8,000 Rs.

In this era, where Nano is set to come to the markets by the year end in the price range of a little over 1 Lakh, it seems that the companies are trying to take advantage of the waiting period. But not to forget the high inflationary effects on the metal prices! Table of Contents

Small cap stock investments: Historical Results & Performance

Damodaran did a nice study about various investment styles that people follow.

Small cap investment is one of most common investment strategy for investors who have the potential to take the risk and afford the losses, if any.
Small cap investment strategy usually falls into the Passive Growth Strategy segment, which means that the investor believes in going for growth strategy for long term and has sufficient risk appetite to absorb the losses which are associated with the small cap companies and small cap stocks.

Here is some historical data which presents the returns available from the small cap stock investments over the period of 1973 to 1995.Small-Cap-Stock-Performance

As we can see from the above graph, the Micro cap and small cap stock performance over the 22 year long horizon has been varying. There is no sure shot way to identify which stock will perform in which way and within how much long duration. In one word, we again come back to “RANDOMNESS”.

Taking a bet on small cap stocks or micro cap stocks is risky in two ways. One, you are betting on the performance of the company which is already small. It is possible that instead of the company turning out to be a big cap stock, it may ultimately turn out to be a micro cap and may even go bankrupt. Second, you are betting on a long time horizon. Remember, the longer the time horizon, the more the risk.

Compare this to a large cap stock. I’ve tried to give a different perspective to looking at Good Stocks v/s Bad stocks. A large cap stock has somewhat better history and historical track record both of the company management and the results it delivers. Even then, if things start going wrong, the big cap may transform first into a mid cap stock, then to a small cap, then to a micro cap and finally may go bankrupt. The Stock Exchanges also place a circuit limit and band filter on each stock to decide the daily trading range. Hence, you have ample amount of time to cut your losses short and save a significant portion of your capital.

Ultimately, you as an investor has to take the bet whether you’re going for small cap stocks or large cap stocks. Randomness rules in all cases! Table of Contents

Inflation Values of various countries across the globe

People across the globe are concerned about the high value of inflation that is hitting them and have shattered their household budgets. But what exactly is happening at the extreme ends when it comes to inflation?
World-Inflation-statistics

Rediff has compiled some data about the extreme cases of countries which have really high value of inflation. The following data is presented in the consolidated format:

1. Zimbabwe: Inflation 355,000%
Unemployment – 80%
A sausage sandwich sells for Zimbabwean $50 million. A 15-kg bag of potatoes cost Zimbabwean $260 million. But then, Zimbabwean $50 million is roughly equal to US$ 1!

2. Iraq: Inflation 53.2%

3. Guinea: Inflation 30.9%

4. San Tome and Principe: Inflation 23.1%

5. Yemen: Inflation 20.8% : unemployment is rampant at 35 per cent.

6. Myanmar: Inflation 20%

7. Uzbekistan: Inflation 19.8%

8. Democratic Republic of Congo: Inflation 18.2%

9. Afghanistan: Inflation 17%

10. Serbia: Inflation 15.5%

Wikipedia provides another nice map-based presentation about the inflation figures of various countries:

World-Inflation-figures

Imagine if you were a resident of any of these countries in the present era of high inflation. Table of Contents

Vought Aircraft IPO

Another company has decided to come to the stock markets for want of money. The Vought Aircraft Holdings is now planning an IPO or Initial Public Offering.
Vought-Aircraft-IPO
What is the business of Vought Aircraft?
The Vought Aircraft company is in the business of making parts and subsystems for commercial, military and business jet aircraft.
Vought is a support partner to the world's leading aerospace manufacturers. The company excels as a Tier I Integrator - filling the gap between prime contractors and traditional subcontractors by providing large, complex aerostructures on a turnkey basis.

Vought's key capabilities include:
• research and development
• design and tooling
• manufacturing
• testing

What is the size of the Vought Aircraft IPO?
The expected value of the Vought Aircraft IPO can be around 250 million USD. Though the valuations may change at the later stage. The value here is only indicative for the purpose of filing the application with SEC.

Who are the customers of Vought Aircraft?
The company's customers include Airbus, Bell Helicopter, Boeing, Cessna, Gulfstream, Hawker Beechcraft, Lockheed Martin, Northrop Grumman, Sikorsky and the U.S. Air Force

What are the business valuations and financial results of Vought Aircraft ?
For the three months ended March 30, Vought's earnings totaled $27.6 million, compared with $19.2 million in the first three months of 2007. The company's revenue grew to $425.4 million, from $380.7 million.

Where will the IPO proceeds be used by Vought Aircraft IPO?
Vought plans to use the proceeds from the IPO to repay debt and for working capital and general corporate purposes.

Who are the underwriters of the issue?
Lehman Brothers, JP Morgan Securities & Goldman Sachs are the underwriters of the issue.
Vought plans to list its shares on the New York Stock Exchange under the symbol "VTC."
Table of Contents

Meezan Capital Protected Fund–I (MCPF-I)

There is some Mutual fund news from Pakistan for the investors. The first ever sharia compliant mutual fund has open up for subscription in Pakistan. It’s called the MCPF-I fund and the IPO for MCPF-I fund is open from Monday.
Meezan-Capital-Protected-Fund–I-MCPF-I

The full name of the fund is Meezan Capital Protected Fund–I (MCPF-I). As the name suggests, it offers an attempt to protect the capital of the investors.

What is the application period for the Meezan Capital Protected Fund–I (MCPF-I)?
The Meezan Capital Protected Fund–I (MCPF-I) will accept applications for the fund IPO from May 19th to May 21st 2008.

What is the price per unit of Meezan Capital Protected Fund–I (MCPF-I)?
The units of the Meezan Capital Protected Fund–I (MCPF-I) fund are offered at a price of Rs. 50 per unit. The investment will be made at par value. After IPO the subscription of units will remain open upto the maximum period of six weeks.

Related: An introduction to Islamic Sharia Mutual Funds

What is the process for applying for Meezan Capital Protected Fund–I (MCPF-I) fund?
Investment in MCPF-I can be made at the offices of Al Meezan Investments and over 100 branches of Meezan Bank in 31 cities across Pakistan. staff report.
The ailing Pakistani economy and the devastating law and order situation in the country is alreadyshaking up the investors confidence. Let’s see how this Meezan Capital Protected Fund–I (MCPF-I) fund will perform in the markets. Table of Contents

Reliance Banking Exchange Traded Fund RBETF: ETF

After the Reliance Gold ETF, the Reliance Mutual fund company has come out with another ETF or Exchange traded Fund. It is called the Reliance Banking Exchange Traded Fund or the Reliance Banking ETF or RBETF.

Reliance Banking Exchange Traded Fund RBETF ETF
What is Reliance Banking Exchange Traded Fund (RBETF) all about?
The Reliance Banking Exchange Traded Fund is about a new fund which will be exchange traded, and hence shares of this ETF can be traded on the exchange in real time.

Which sector the Reliance Banking Exchange Traded Fund (RBETF) be targeting?
As the name suggests, the Reliance Banking Exchange Traded Fund or Reliance ETF will be betting the investors money in the banking sector.

Which benchmark index will be tracked by Reliance Banking Exchange Traded Fund (RBETF)?
India Index Service and Product Limited (IISL) has developed the CNX Bank Index. This is the index that Reliance Banking Exchange Traded Fund will be tracking. Presently the index has 12 stocks from the banking sector traded on the National Stock Exchange.

Where will the Reliance Banking Exchange Traded Fund shares be listed?
The shares of Reliance Banking Exchange Traded Fund will be traded on the NSE or National stock exchange of India.

Related: Kotak Sensex ETF,   ETF: An example with returns calculations,  Simplest way to Invest in ETF,  Gold ETF

How will the assets be allotted in Reliance Banking Exchange Traded Fund scheme?
Around 90 to 100% of the money will be put in the stocks covered within the benchmark CNX bank stocks. While the remaining 0 to 10% will be in Liquid Money market Instruments like CBLO.

What is the minimum application amount for Reliance Banking Exchange Traded Fund (RBETF)?
The minimum investment amount for Reliance Banking ETF is 5000 Rs. and in multiples of Re. 1 after that.

What are the entry and exit load charges during and after the NFO period for Reliance Banking Exchange Traded Fund?
During NFO period, a standard 2.25% entry load will be charged to the investors.
After the NFO period, there will be no entry load charges, but the standard brokerage costs will be applicable and will vary from one broker to the other.
The exit load will be the brokerage on sell leg and will again be determined by the respective broker.
What are the opening and closing date for the Reliance Banking Exchange Traded Fund NFO?
The Reliance Banking Exchange Traded Fund will accept NFO applications between 12th May 2008 and 30th may 2008.
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Burrup Holdings IPO

A chemical company from Australia is planning to come out with its IPO or Initial Public Offering. Burrup Holdings Ltd, which operates an ammonia plant in Western Australia, has launched a $500 million initial public offer (IPO) to list on the Australian Securities Exchange.
Burrup-Holdings-IPO

What s the size of the Burrup Holdings IPO?
The Burrup Holdings IPO is expected to raise around 390 to 502 million $

What is the price range of the Burrup Holdings IPO?
The Burrup Holdings IPO shares are priced in the range of $1.75 to $2.25 per share.

What are the business valuations and market position of Burrup Holdings?
The company accounts for about four per cent of the total output of tradable ammonia and has forecast production of more than 800,000 tonnes in fiscal year 2009.
The plant is located on the Burrup Peninsula in WA and is the only merchant ammonia plant in Australia.
Burrup has a 20 year offtake and marketing agreement with Yarra International, which also has a 30 per cent stake in the ammonia producer.
Burrup and Yarra have also entered into an agreement to evaluate a feasibility study into the construction of a 350,000 tonnes per year ammonium nitrate plant in WA.
Ammonium nitrate is used to produce explosives and Burrup said the plant's production is expected to be produced by the growing mining industry in WA.

Where will the IPO proceeds be used for Burrup Holdings IPO?
As per the SMH, "The IPO will position Burrup to take advantage of its considerable growth opportunities and utilise its extensive skills in downstream industry to create further shareholder value," chairman and managing director Pankaj Oswal said in a statement.
Burrup said it was favourable positioned to capitalise on global conditions for the sale of ammonia, where prices have traded above $US500 ($A523.83) per tonne.
The company expects strong fundamentals, including declining arable land and potential demand for biofuel to support higher ammonia prices into the future.
"Burrup's industry leading expertise give it the platform necessary to take advantage of favourable market dynamics and generate long term attractive returns for investors," Mr Oswal, said.

What will be the share holding pattern after the Burrup Holdings IPO?
Following the IPO, Mr Oswal will own 58 per cent of the listed company, Yarra will hold 27 per cent, with new shareholders holding the balance.

No information is presently available about the listing dates of the Burrup Holdings IPO.
Table of Contents

Grand Canyon University IPO

The educational institutes across the globe are also preparing to go for the IPO route to raise money. Recently, the Grand Canyon University, a private Christian college in Phoenix, filed an application with the U.S. Securities and Exchange Commission for an IPO or Initial Public Offering.
Grand-Canyon-University-IPO

Even in India, the Kota based private coaching tutorial institutes for IIT-JEE are planning to go for IPO.
What is the size of the Grand Canyon University IPO?
The Grand Canyon University IPO is expected to raise around $230 million USD from the IPO.

Where will the capital raised or IPO proceeds from Grand Canyon University IPO be used?
The money will be used to pay back original shareholders' loans and pay off bills, as well as for business expansion.

What are the business valuations and financial results of the Grand Canyon University?
The results and financial standings do not show a rosy picture. As per the news on BJ, Private investors purchased the university in 2004 when it was having financial difficulties, growing it from nearly 5,000 students to nearly 15,000 students today. Of those students, 12,497 are online and 2,2547 are in traditional classrooms, according to SEC documents.

For the year ended Dec. 31, 2007, Grand Canyon reported net income of $3 million on net revenue of $99 million, compared with $1.1 million in net income on $72 million in revenue for 2006.

From Feb. 2 (when it was purchased by investors) to Dec. 31, 2004, Grand Canyon lost $16.2 million on $25.6 million in revenue. By 2005, losses improved to $3.8 million on $51.8 million in revenue.

On April 15, Grand Canyon management paid $19.5 million to the former owner of the college, adding to an initial $3 million payment in October 2007, according to the filing. These were paid to resolve a dispute with the former owner.

Which ticker symbol will be used by Grand Canyon University IPO?
The listing of the common stock will be on the Nasdaq Global Market under the symbol "LOPE."
No information is presently available about the price band or listing dates of the Grand Canyon University IPO. Table of Contents

SEBI Eases IPO Process: Refund Process Eliminated: Money to remain in Bank till Allocation

In a big respite to the IPO applicants, the SEBI or Securities and Exchange Board of India has eased out the process of money transfer and eliminated the refund process completely.


In the new setup, the applicant who is applying for the IPO, will not have to send the money to the registrar of the IPO. Instead, the money will remain in his bank account, but in a locked state. Once the allocation is complete, the required amount of money will be transferred to the Registrar of the IPO and the balance money will be set free from the locked state.

This will completely eliminate the process of refund.. As I’ve explained in this article, Should you invest in IPO’s, now the calculations for interest rate earnings will have to re-worked. It is not clear whether the locked money will be eligible to earn any interest or not, but atleast there will be no problems with the delayed refunds, the postal delays in case of paper cheques and other reasons given by registrars for delaying the refund payment. Not only that, it will also save a lot on Postal charges & costs.

Let’s hope to see more such investor friendly and cost efficient developments from the market regulators. Table of Contents

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