PPGPL IPO...

[jusjase44]

That IPO still on?

[snatman]

IPO Bacchanal is neverending

“The President of the National Gas Company (NGC) has confirmed that the value of the shares of Phoenix Park Gas Processors Limited (PPGPL) has dropped since they conceptualised the IPO of PPGPL.

“NGC has now confirmed that it is expected that the price that they will offer PPGPL’s share at, will be less than the price at which they, (NGC), bought it in September 2013.

[fay]

reviving this thread

[PariaMan]

Latest I heard is 21st of July 2015.

[Country_Bookie]

Was thinking this might have been postponed till after elections to avoid another potential bachannal. But then again, maybe they want to give the investing public a chance to make sum morney to buy their votes.

[PariaMan]

Part of Minister's Speech on April 22


PPGPL IPO
We had a presentation from Phoenix Park Gas Processors, and in a few weeks we will be
launching the much anticipated Phoenix Park Gas Processors Limited Initial Public Offering.
When we do that, we will make history in that it will be the first time an energy company is being
put on to our stock exchange. Look on our stock exchange and our stock exchange is not a
reflection of our economy. Our stock exchange is populated by banks, by insurance companies,
by manufacturing companies. Our stock exchange is not a reflection that this is an energy
economy. That is about to change.
8
So for the first time in the history of this country, there will be an energy company on the stock
exchange. That allows for a wider participation in our economy. It’s what I call, economic
inclusion as opposed to economic exclusion, and we as a Government are about economic
inclusion. It allows doctors, lawyers, nurses, policemen, firemen and teachers to directly own a
piece of the country’s energy sector and as was pointed out by the President of Phoenix Park,
Phoenix Park has never not made a profit. Phoenix Park has always made a profit. Infact, I
asked for Mr. Rampersad to give me the financials for the year 2008 and 2009. Those were
pretty bad years in terms of natural gas price and in the worst of times, Phoenix Park makes a
profit. So it is a very good company, a very strong company and it is a company with an
excellent reputation in T&T.
The company is owned 80% by the National Gas Company of Trinidad and Tobago. I recognize
Mr. Mulchan Lewis, a Director in both NGC and Phoenix Park and a former Chairman of the
Couva/Tabaquite/Talparo Regional Corporation. 10% is owned by NEL and the other 10% is
owned by a consortium of Unit Trust, NIB and NEL. The intention is to put part of the NGC’s
shareholding unto the local stock exchange, making it available for the people of T&T to buy
into.
Ladies and gentlemen, we have learnt from the FCB IPO experience and we have strengthened
the process around the allocation of shares for this IPO. By the end of this week we expect to
have the audited accounts of PPGPL and NGC. We expect that that would be completed, and
those are needed in preparation for the IPO.

[rav191]

Anyone came across a good brokerage firm yet...

[V2NR 3.0]

Subscribed...

[Redman]

Should this IPO be brought to market now?
If the functional reason for an IPO is to raise capital for the company-PPGL, then why bring it at a time that the uncertainty is affecting the price?

[Eagle]

My info is that this being an election year and to provide extra goodies for the electorate hence the reason for the IPO at this time. Additionally the share may be under price at $20 per share which is good especially if u are aware of what took place with FCB IPO in 2013.
I had a broker as a guest lecture and he said the week ,around July 13 he expect it to be ready

[Redman]

None of those reasons are valid to PPGL...what we are seeing here is a subvention of the companies requirements to a political need

The FCB ipo is exactly the reason that we need to take a look.

The 20 price should reflect a reasonable price for the company's valuation divided by the quantity of stock.

The performance of the FCB IPO means that the price was too low-FCB could have raised 50% more capital during the exercise...

The mandate of the underwriter is to get as much capital raised for the client...its obvious that it could have raised much more...

Applying that to the PPGL IPO....should the company be willing to raise less capital for the same cost-in order to please the political directorate?

and a broker would want the IPO cuz he gets the commissions.

So he HAS to sing for his supper.

[Country_Bookie]

The value of a company is not based on the current level of energy prices. It is based on the future value of its cash flows. The future outlook for energy prices is a major determinant of its future cash flows. However as volatile as energy prices are, the future outlook does not change all that much in the short term.

If you are suggesting that they wait for this outlook to improve, and hence the company value to improve, ok, but that may take over a year, and even then, there is the possibility that energy prices may go down even further.

[Redman]

You need to re read Eagles post and my response to his post...

the FCB IPO was priced too low....if you disagree the performance post IPO is proof.

the demand for the stock was sufficient to raise the offering price without endangering subscription.

The goal of an IPO is to raise as much capital for as little equity in the co as is practical..


So I repeat.. my questions...should PPGL IPO now?
and is it that the IPO is being pushed for political needs???

[Country_Bookie]

It's easy to say after the fact that the FCB IPO was priced too low, but keep in mind that this was the first IPO on the TTSE since PHL in 2001, hence they decided to err on the side of conservatism by pricing it too low. Also don't forget that a strong company like Agostini had to cancel an issue of additional shares a few years ago because of low demand.

So no one can know for sure when is the right time for the IPO. The 1 year delay has resulted in a fall in the value of the company, if they delay it for another 6 months, the question then becomes, will the value of the company fall even more?

[Redman]

Over subscription was the clear indicator of demand at the price point...underwriters are supposed to move it To a sweet spot.
So they could have raised 20% more capital and still allow upside.
So the low demand story was not a factor.

My question has to do with the proper functioning of the capital markets.

2 poorly run iPos of VALUABLE assets do nothing except transfer ownership at an inefficient price.

[Country_Bookie]

State run companies will always be sold at a discount as the aim of the MoF, CBTT & SEC has been capital market development and building an investment culture for the last 15 years.

An actual IPO driven by market pricing and existing private shareholders seeking the maximum price for their shares will be the true test of our mechanism for correctly pricing an IPO. I heard rumours of one such IPO in the property industry so we might see in time.

[Redman]

If its structure they wanted the financial improprieties before during and after the IPO should be dealt with in a better manner.

You aiming to be the financial hub of the region and abuse by a co officer in the allocation of the shares,aided and abetted by the Chair of the Stock exchange is unresolved...as are the other issues.

yet they have learned from the last IPO????

we are ions away from any serious capital markets and a real financial sector.

[PapaC]

Really would like to know what we "learned" from the FCB.

[DVSTT]

Ngl IPO advertising on cnc3.
It's coming.

[megadoc1]

yes just saw a few

[DVSTT]

Anything?

[snatman]

Opening on August 10, closing on Sept 4

Pay down on your private jets from now!!

[PariaMan]

Sauce?

[snatman]

my broker

Sauce?

[PariaMan]

Hearing words from other brokers that sometime early August as well

[PariaMan]

From the Trinidad Guardian

Published:
Monday, July 27, 2015
The TTNGL (Phoenix Park) IPO is set to open on August 10 and close on September 4, 2015, according to a notice from West Indies Stockbrokers (WISE) this afternoon.

The T&T SEC approved the IPO’s prospectus late last week.

Stay tued to T&T Guardian for the full story.

Business

[megadoc1]

$20 dollars a share I heard on the news tonight

[pugboy]

Soare folks gonna bet the whole hogn this ?

[neilsingh100]

The timing for this IPO is not good since a new government can easily cancel it once they get in power.

[snatman]

Soare folks gonna bet the whole hogn this ?

Depends on the prospectus info. IF PE is less than 10 then yeah, whole hog