Softlogic IPO
Softlogic Holdings – A company grew up with aggressive acquisitions.
The company invite public to subscribe 139 million shares at Rs 29.00 per share. Softlogic’s chairman told Reuters the IPO, Sri Lanka’s largest since 2005, will be used to retire the firm’s short-term debt. Subscription list opens on 9th June 2011 and will be closed on 29th June.
Summary of Softlogic IPO
Number of Shares to be Issued 139,000,000 ordinary shares
Issue Price Rs. 29/- (Rupees Twenty Nine) per share
Amount to be Raised Rs. 4,031,000,000/- (Rupees Four Billion and Thirty One million)
Minimum Subscription 500 shares (i.e. Rs. 14,500/-)
Applications in excess of 500 shares should be in multiples of 100 shares. The minimum subscription of 500 shares will be allotted to all successful applicants of the Company’s Initial Public Offering.
The History of Softlogic
Majority of people know Softlogic as the Nokia dealer for Sri Lanka but now it is a large holding company with wide interest in fast growing sectors of Sri Lankan economy. Within last few months they have acquired Sri Lanka’s largest listed hospital group Asiri Hospital Holdings.
Currently Softlogic has diversified in to Automobile, Finance, Health Care, Information Technology, Leisure and Retail Trading of consumer electronics.
Is it worth subscribing Softlogic IPO at Rs 29?
As usual Softlogic too not an under priced IPO. Current Market Price Earnings ratio of Colombo Stock Exchange is around 26. Softlogic Price Earnings Ratio based on Post IPO number of shares and annualized Earnings per share with available accounts is around 27 times. So I can say this is a slightly over priced IPO based on historical earnings.
Other thing that investors should consider is Softlogic issued 14 million shares through a private placement at Rs 72.00 per share in March / April 2010 and there was a sub division of shares 1 in to 10 in Feb 2011. This makes cost per share for those investors at private placement just Rs 7.20.
With these facts it is highly unlikely to have a sharp gain on first day of trading Softlogic shares. If you are a long term investor with holding power to hold two to three years, this IPO will give you good return in future.
You can download Softlogic Prospectus and Application form by visiting http://www.softlogic.lk/IPO.html
Always read the prospectus carefully before you make any investment decision.
Related posts
Filed under: Colombo Stock Exchange • cse • IPO • Sri Lanka
Like this post? Subscribe to my RSS feed and get loads more!
Softlogic IPO Direct Download links.
Download Softlogic Holdings IPO Application
Download Softlogic Holdings IPO Prospectus
@Admin,
I personally feel that this IPO will fail in the short term but will have a very good demand in the long run.
Specially after a stock split, where the capital remains the same with more number of share.( 1/10 ) which means the EPS is lower and therefore the share price increase would be slow.
Pls correct me if i am wrong.
The above information is only my personal view and does not influence anyone in buying / not buying this IPO.
I am planning on getting this from the secondary market.
Hi, my personal opinion on this is, it has big demand, b’cos these guys started slow and now they are big giant in the market. definitely this share will go above 100 over the period of 3 months, look at Softlogic finance which former capital reach share was 32 rupees 6 months back the moment Softlogic took over it became 72 being a sister company can go up to 72 mother company definite will pass 100 without any issue.
@aysha
100 in 3 months = day dreamer
No offense. but..
pls put forward your workings as to how this share will reach 100 in 3 months.
have you even gone through the prospectus.
they have a huge amount of debt to be settled and there after the rest will be invested in opening up new ventures in terms of new retail outlet openings + hotel sector , etc… that's if i am cutting short of the story.
please go through page 58 , 59 . that will help you. it has key points.
Admin could you explain this further and put forward your personal view with regard to this IPO & aysha pls justfy 100 with more tips.
The above info is only my personal view and does not influence anyone in buying / not buying, this IPO.
@ Gajaman pro,
You are correct 100 in 3 months is totally unrealistic target.
Thanks for the informaton ,I already applid for Softlogic shares
@Anonymous,
It doesn't matter as far as you are a long term investor with good holding power.
Is there any adverse effect to the share price of softlogic from valible one ipo which is coming after this?
@ Anonymous,
Nothing will happen to Sfoftlofic share price from Vallibel One IPO.
Vallibel One is relatively small IPO compared to Softlogic.
when day softlogic comes to market and are they limit issues please tell me answer
@Anonymous,
They still to announce the basis of allotment. To commence trading it will take another two weeks minimum.
BASIS OF ALLOTMENT – SOFTLOGIC HOLDINGS LIMITED
Softlogic holding is in fianancial problem that is why they have issued IPO to raise funds to clear the debts,the operaiton in pakistan closed down due to mismanagment and not clearing the banks and vendors,The MD Haresh
Kaimal ran away unannounced from pakistan and needs to clear payemnts worth millions to SCB and others
Admin any clarification from you regarding above statement? Is softlogic operates in Pakistan?
@Anonymous,
It is Amin's opinion. Actually this should be answered by Softlogic.
I will appreciate if someone from Softlogic take his / her time to answer above accusation.
Admin any guess on 1st day opening price & days high?
@Anonymous,
I think max will be Rs 35/-.
Any formula for your figure? Any accepted norms/theories which are used by veterens? Practicaly accepted %? Just tell !
Just common sense. I don't think any expert can predict Sri Lankan market with ratios.
Any rumours at the last movment abt 1st day trading price?
Sorry brother, can't say anything. Wish tomorrow will not like today. Lets see.
I declare im going to withdraw from share market
Rgds
ECW
Hi all,
I told you guys not to invest. If you guys had gone through this blog before you would have clearly seen my opinion and most of all the comments written by the admin.
The admin of this blog is supposed to be an expert since I've been following this blog for quite sometime.
Dear investors please read the prospectus carefully and never take 100% advice or words of brokers. After all it is you hard earned money.
I avoided the IPO , the moment i went through the figures and the ammount of debt this company is going through.after all it it your hard earned money.
I don't mean to discourage, however as said before for people with good holding power, it wont be an issue, since this company will do well in future.
Howe
I declare im going to stop invest in ipos & stock market until further notice.
Thank You
Rgds
Mr Pig
Hey bro gajaman pro yes u & admin have clearly mentioned it. I beleve both of u are veterens in this feld. I have seen your comments on shl only. So pls share ur views on other ipos too. It will help us to learn more. Behind every dark cloud their is a silver line. Lets be optimestic dont get demotivated.
Is today a amber light day to shl ipo share holders
Admin gajaman pro stock tips & all the other veterens who going trough this blog please share your views analyzed data through this blog since if all are doing all of us are benifited otherwise multi millioners billioners company owners will make profits poor us will get poor further! Y EVERY ONE IS SILENT!
Mr Pig
Careful when you are buying electronics from softlogic. They are giving items which are at show room for display. Normaly Singer & Abans doing 50% discount clearance sale but have you ever seen a Softlogic clearance sale? I got cought but i screwed that show room managers a**!