Opus

**BRICKS** · 01-10-2007, 06:55 PM

LIKE all the real good stock they don't let the MUGS in, not like Burger Fuel so just look ON..

**Lizard** · 02-10-2007, 10:14 AM

I got a copy of the investment statement/prospectus last night. The offer price range of $1.45 - $1.70 seems to equate to a pro-forma P/E of 19.5 - 22.9 when fully diluted for 11.5m employee options and 0.9m convertible notes. Forward P/E of 15.9 - 18.7 on the same basis.

Profit margins seem lowish for this type of business. Also need to make allowance for reasonably generous employee share plans (up to 3% of capital per year) and possible low liquidity.

Real value is probably highly dependent on execution of growth strategy - i.e. can they create value by purchasing businesses using new equity? So expect a feedback loop on the share price and a valuation spiral. In a strong market, the chance of an upward spiral is increased.

Overall, I think it looks a fair listing in current market.

**Dr_Who** · 02-10-2007, 10:37 AM

Liz, are they keeping the capital raised in the IPO for themselves or retaining for growth?

**Lizard** · 02-10-2007, 10:58 AM

Approx 22m shares come from sale by an existing shareholder (Opus International (NZ) Ltd), while 7m are new shares issued by the company. However Opus International retain 90.5m shares (67% of capital) which are held under a lock-up for 16 months.

As I understand it, the main reason for public listing is to facilitate acquisitions via the ability to offer new equity as part of a purchase price. Any acquisitions are not included in forecasts.

**TwinkleToes** · 10-10-2007, 12:16 AM

There is a very large demand with this issue as no one got the stock they wanted. The listing should therefore be very strong.

**whatsup** · 10-10-2007, 09:39 AM

What are the dates for Opus ,prospectus, closing, listing and at what price , Iv heard $1.65 , whats theexpectations here.

**troyvdh** · 10-10-2007, 10:00 AM

TT...you got that right.I managed to get a few...after jumping up and down (over the phone).The broking companies I rang all sounded really p..... off .
Having said that I suppose it always happens when something half decent is offered.

**rymndchn** · 10-10-2007, 02:40 PM

Does anybody know of any brokerage company that still has Opus available?

I've already tried ASB Securities and Direct Broking who aren't doing it/ have already ran out of an allocation. I've also tried First NZ Capital who said that they are only allocating to their clients.