Z Energy IPO prospectus
https://www.nzx.com/companies/IFT/announcements/238968
Printable View
Z Energy IPO prospectus
https://www.nzx.com/companies/IFT/announcements/238968
The few bits I have read so far:
New shares to be issued to repay shareholder loans of $400m
IFT/Superfund will sell down 50 or 60%. Will retain ownership through joint holding company so they will retain equal ownership (ie. one is not selling more than the other)
8.1%+ Gross yeild.
The yeild is a lot more than I was expecting so I might have to have a look under the covers a bit more.
Flat revenue, very slim margins and run by lawyers and accountants. Dont expect this to grow like Ryman.
I didnt find out what the yield is but there is a reason why Shell sold out-the return on capital is a fraction of oil exploration.
That is my concern. Definately not a growth stock but may qualify as a good yeild stock??
Both articles are same from what I can tell:
http://www.nbr.co.nz/article/z-energ...ment-bd-143324
http://www.nzherald.co.nz/business/n...ectid=10903095
Assuming their valuation of the business is correct. How was the original business valued?
If you are looking for a yield stock then you will have to be confident they can hold their margins to maintain the payments. Might be tough with declining fuel volumes, although they expect it to rise 5% this year. I would be looking at the longer term trends however.
Interesting that fuel makes up 95% of revenues so this is what I would be focusing on. If they can grow their other categories outside of fuel this could be attractive. I am not sure they can with the team they have in place...
This is the story from that time: http://www.stuff.co.nz/business/indu...-to-branch-out
Hmmm was that the reason for the recent run up in NZR....?
A little on-market buying to fluff up a more attractive transfer price of the holding across to Z Energy Ltd (as per today's NZR SSH notices)
;-)
Why are so many service stations in West Auckland closing down. Maybe they intend to be the last man standing?
Shoeshine in NBR had an interesting piece a week or so headed [B] Z Energy vamps its numbers but do they add up?[\b]
Think he was saying the accounting was all too confusing ....and was interested if z could increase the number of coffees from 30000 a week to the 170000 a week that bp sell
The CEO did tell him that share is back to where it was when they took over from shell
Confusion reigns ...
CJ. " Having said that, they have turned a $700m investment into an estimated $1.5B so will effectively hold their 40-50% at zero cost. "
CJ " Did Shell really sell that cheap as I dont see the changes that have been made justify a doubling in value. "
percy " You may have hit a "bullseye" with that comment "
peat " they have completely rebranded. and increased market share. They've definitely added value. "
winner69 " The CEO did tell him that share is back to where it was when they took over from shell ".
Essentially a private equity sell down ....and after they paid themselves a decent divie as well
How often have these sort of IPOs ended up in tears?
At least they don't seem to be using the 'iconic' story to lure the moms and dads into parting with their money
Here's what was said. See bennetts on to the ipo bit ...share ain't anything if it costs shareholders. A large, chunk of z sales are 'commercial' but some of that info is commercial sensitive stuff.
Excerpt from shoeshine
Market share of all products has been declining since about mid 2011 and at about 28% is back where it was when the company rebranded.
However, Mr Bennetts is not concerned about that because the company concentrates on being within a certain band and as long as it has economies of scale it makes money.
“We believe that we are comfortably in that band right now. If we wanted to increase market share we could do that. But we think it would have an economic consequence that would destroy shareholder value.”
Sort of says no growth aspirations from fuel except what the market delivers
So it's all about more coffee and muffins and chocolate bars
How have they managed to lose that much market share when they are virtually the only player building new service stations while others close them down?? There is more here than we are being told.
Yes good points. Is their present management team capable of selling more coffees, chocolate bars and muffins? Based on performance since the acquisition, I would say no...
Exactly.With smaller cars using less petrol,there is no growth in the fuel market.
Just another retailer fighting in a tough market.
I must admit to finding it rather a waste of time when I go to the counter to pay for my petrol, to be asked if I want a coffee or overpriced chocolate bars.
No.!
BP's 6c discount through the AA card wouldn't have helped Z compete at the retail end, despite their refurbished stations/service. Interesting though that BP appear to have come into line by reducing their discount recently to 4c.
Z is certainly not a growth stock, whichever way anyone tries to spin it. But at a prospective gross yield of 8%+ it warrants consideration for the income side of portfolios. Should be plenty of takers in today's environment.
Interestingly, the CEO Mr Bennett, has written to all bondholders in Z Energy. He thanks them for having faith and investing in the business before it had established its credentials. However he stops short of offering bondholders a firm allocation of shares. He does say bondholders can apply to a "NZX firm" for an allocation then lists some selected brokers.
It is disappointing that the company has not set aside some shares as a pool for its existing bondholders. Mr Bennett must be confident he can unload all the shares without the bondholders help.
Fuel sales declining across industry so shop sales only growth part of business but even that under pressure.
I think BP would be the clear leader in shop sales because of their cafe an coffee offering , mobil tried it and have backed away except for the coffee which is comparable to bp offering , shell and caltex dont have the same offerings as far as coffee an cafe type offerings.
So maybe shell have room to grow coffee sales but they would need to invest in better coffee machines over say 100 high margin stores at 20k a coffee machine thats a 2mil investment so not cheap.
And with the fast food chains offering cheap under $5 deals how many people buy pies now? super markets opening in every subburb competition is fierce for the retail dollar
I go with previous posters it a income story only and if the market stays as a cosy 4 some income should be steady ( as ceo say going for market share would never work in this market as all players have deep pockets)
Winner,
You are spot on. I had 24 years with BP. Retail margins got tighter and tighter after deregulation. Deregulation was needed. NZ had 1 service station per 3000 people which was 3 times the requirement. The dogs have died and are still dying. It has become a coffee/muffins and chocolate business. If you invest in this IPO then you can look forward to a pretty stable but boring return With a little bit of long term downside.....The fat in Service Station retailing has been well and truly removed.
Better opportunities elsewhere.
Tripled their money, not doubled:
http://www.nbr.co.nz/article/infrati...ment-bd-143411
Will shareholders get discounted fuel?
I very much doubt it - if margins on retailing motor fuels are as slim as we're told they are!
The days of shareholder discounts belong to another era - most companies these days are giving priority to attracting the big institutions to their share registers. Loyalty card schemes are used to "reward" customers. OK, WHS offers shareholders a special discount on occasions but they seem to be the exception and it's not a 365 days a year arrangement. So, no.
That's probably no different to what they are allowed to negotiate anyway.
I have a big discount off my floating mortgage and didnt need to be a shareholder to get that. Having said that, it would be nice to get it automatically rather than have to negotiate/threaten to leave to get it.
Anyone have any idea how easy it is to get a firm allocation of these? Are they in short supply, or are brokers struggling to find homes for them?
Have heard a rumor there will be a scaledown but havnt substantiated this.
I've been scaled to 20% of my requested volume for this. Tighter than SML
wondering whether it relates to individual broking house allocations being 'unevenly' distributed?
anyone else been advised of a firm allocation?
Apparently I'll find out tomorrow.
Wow 650 - 900 million shares on offer, and scaled down by 20% damn!!
Not by 20% but to 20% in Xerof's case!
I, too, hope to find out tomorrow.
Not being a stagger.. good luck to all that want them.. Good dividend.. Ho hum...
Not willing to sell down to buy..
Correct CJ, firm $ allocations were given to brokers yesterday. I have read the prospectus, asked for a firm allocation, got scaled, filled in the form, written out the cheque, and its in the mail.
I'll phone the police immediately Balance, possibly David Shearer as well
The application form is for a Dollar amount, not share amount. This IPO does appear to be structured a little different to the usual
Brokers all got their firm allocation dollar amount yesterday (see todays ann by Infratil) How they allocate to their clients is their concern, not mine. I would presume this is the retail part of the IPO, not all of it, as the price is set later by the book build. Retail is a pricetaker, not price setter
Sad - but true.Quote:
Retail is a pricetaker, not price setter
There's no public pool in this one, so if you want to participate you need to put your hand up for a dollar amount. Of course, you can always decline to fill in the application form when received - but probably at the expense of some damage to your future client/broker relationship!
:cool:
Looks like Craigs will give me all i can eat and pricing looking like lower end rather than higher but we will see.
Classic IPO - Craigs keep lion share of retail allocation and give its clients 100% of what they ask for (all good and great on them - to be applauded) while rationing other brokers.
End result?
Clients of other brokers will try and get out on opening knowing that Craigs' clients have plenty to stag with.
Well, took 24 hours for the answer to my original question to be answered, which is that the non-organising Brokers (as usual) have been starved of supply.
I might be pleased to have only got 20% then, if all Craigs clients are going to choke on them.
Happy for price to be low end, nicer yield.....
Broker greed never ceases to amaze me
Bit general, i won't be stagging for starters.
My original amount requested has been scaled by 25%. Which means if the price doesn't hold at least I can top up cheaper if I want to, to my original $ amount.
http://www.stuff.co.nz/business/indu...el-for-thought
Cautious optimism.
I like being cautiously optimistic - it offsets my usual unbridled pessimism.......
I have applied for some but yet to hear back from Craigs.
Not buying.. .. Not good value.. IMHO..
http://www.stuff.co.nz/business/mone...behind-Z-offer
Unfortunately for retail investors, not much can be done about that because the price will be set after the closure of the broker firm offer on August 15. Retail buyers in the IPO will just have to hope for the best.
Below is what is posted on ASBSecurities website:
Z Energy Limited
ASB Securities have ceased registering interest in the offer, due to significant demand. Clients who have forwarded applications will be contacted as soon as possible to confirm if application was successful.
Applications are being filled on a first in first served basis, and scaling may apply.
If i was to ask one question -
Why did Shell sell it ? The answer was in the NZ herald recently!
I submitted my ASB securities application form at 5.42 Pm ( PDF & email letter) on Fri afternoon. Yesterday they confirmed they received it and will be allocating this morning in order of received. He would not be drawn on scaling when asked "will we get what we wanted". Money still in CMA at present time.
I have not applied for any but significantly ASB Securities have not sought interest from me so I think this float will be well filled and scaling to be severe.
Hmm. Same here, ASB would not say whether or not I will be scaled as of today.
Nothing that you can do now.. Sit back and relax..
Disc. Did not apply..
Ive missed out totally in the past or got small amounts with other organizing brokers. Craigs have given me 100% for me, and also100% for my family estate account. so looks like im on a winning end this time round.
There are several "layers" of Arrangers, Bookrunners, Joint Lead Managers, Retail Affiliates, NZ Retail Co-Managers etc involved in this float - all with varying claims to the pie. Throw in the myriad individual broker/client relationships and their "values" and it's no wonder that experiences vary considerably.
For the record, I was scaled 50% - happy to sit on that and see how it goes!
Asb have scaled my application to $10000. I applied for $30000
When are they due to be listed?
Me neither. Was looking forward to owning Z longterm, filed "interest" early, shook cash loose from elsewhere to enable it, but brokers have not even sent me a prospectus or application form yet. So reluctantly concluding i'm sitting with Sam Goldwyn (of "Include me out!" fame).
I'll just have to be happy holding some of their bonds, & watching for some future market slump for a chance to swap some for equity, maybe.
Already started putting my hardearned into easily dumpable high yielders, with hopes of better luck in the Meridian sweepstakes.
In Parliament this afternoon govt said they hope to get MEL done within the month from today.
change your broker, thats not good enough
At the risk of being reported to the FMA for trashing, who is your current broker?
I applied last weekend. ASB haven't confirmed with me yet :(
It's understandable if some ASB clients feel aggrieved that "their" broker hasn't performed very well in this IPO. But ASB aren't part of the arranging, organising or managing groups, so don't have much clout in the operation.
Another IPO and it will be someone else's turn to be unpopular.
:mellow:
agree in part
I don't mind missing out - its what you get with a discount broker. I missed out on Synlait and didn't complain even though I was disappointed.
It's the lack of communication. They said I had to have clear funds in my account. I did. But now they haven't contacted me to say if I am in or out. Do I have to keep the money their or should I have bought more DIL on Wednesday.
ASB replied to my today. I got 80% for what I asked for. I was pretty disappoint with missing out on Synlait too. But I do agree, I just started share trading and ASB is the best I can go with currently.
Yep, 10k here too, asked for 25k
I deal with ASB and Craigs. Got full allocation from Craigs but I was very late in applying to ASB and they said sorry, too late!
Got 70% from Craigs
Yes, I got 10k too. Seems like they are scaling anyone who applied for more than 10k to 10k.
Morningstar have said dont buy so I have decided to go all in :) :
http://www.sharechat.co.nz/article/3...tar-says.html?