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Member
CBL priority pool oversubscribed
My Broker said he heard there has been strong offshore demand and that the priorty offer is now well oversubscribed. Looks cheap at 8.0x PE and pays a good yield, could be worth a punt.
I also found an article in the Australian Financial Review.
CBL priority pool oversubscribed
Kiwi insurer CBL Corporation's priority pool is oversubscribed as it seeks to raise NZ$132 million for a dual listing next month.
The priority pool is open to CBL's close business associates and partners, and was set at $10 million with the ability to take oversubscriptions.
CBL, advised by UBS, Forsyth Barr and Bancorp, will launch an institutional bookbuild on Thursday.
CBL, the largest and oldest credit surety provider in New Zealand, expects to list at between NZ$1.45 and NZ$1.85 a share, and raise between NZ$123 million and NZ$132 million. This will indicate a market cap of up to NZ$389 million.
The company, which sources a large chunk of its revenue from Europe, plans to use the money it raises for organic growth and branching out into new lines of business.
Management is expected to retain around 25 per cent of CBL's stock after it is listed.
Street Talk revealed that Forsyth Barr analysts had valued CBL at $NZ385 million to $NZ450 million in pre-marketing research.
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The priority pool is only $10m. I note that Forbarr has farmed it out to FNZC like they did with Fliway when they didn't get takeup and that was a disaster. I was very interested jn CBL but got a bit scared away by a) Forbarr being involved and b) not much interest here on Sharetrader.
That said, all dual listing IPOs in the last three years have done well on list day if i recall correctly.
GS
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Allocation was scaled back by 50 %,due to demand from Australian brokers ?
Allocated at lower end $1.55
PE undemanding
Anyone else in?
http://www.scoop.co.nz/stories/BU150...-bookbuild.htm
Last edited by kiora; 18-09-2015 at 07:12 PM.
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I find them quite exposed to property construction cycles and the French market and legislation in particular. Good profits but too much concentration to be prudent for an insurance company.
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I swallowed my doubts and applied for a few. Will see how many fewer are allocated!
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Is it possible to apply through asb securities/if I don't have a broker, or is there a place the public can apply for shares directly?
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Originally Posted by clip
Is it possible to apply through asb securities/if I don't have a broker, or is there a place the public can apply for shares directly?
Sorry they are already allocated clip
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If the talk of more self regulation in the building industry results in more performance bonds being issued, CBL will be a big winner!
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What are people's thoughts on buying on the market on listing - this is one stock i'm quite keen to get a hold of a few early. I imagine (with little research as yet or many years in the market, nor knowledge of) there will be an increase on listing followed by some stag selling - anyone care to voice their opinion on this and check back later to see if they are right?
(I will be DYOR'ing and not holding any grudges if my entry is astray to the posters's opinions I generally tend to keep an eye on )
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I have heard things regarding some of the managers/directors pasts... lets just say I think they are "questionable" which is the reason why I'm not investing, unfortunately, because I did initially like it.
I am also a little worried why CBL are so "hell bent" to get itself listed while they know it is a volatile/tough market... if it was such a great company why not wait till early next year (only a couple months away...) when things have stabilized and therefore are able to receive a higher price and more capital (Yes I know they say "they are looking for long term investors and don't care about short term volatility" but this just doesn't wash with me...)
Anyway that's just some food for thought, because I don't "have a good feeling" about CBL (as a result of the above), I'm out.
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