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BRITAK IPO: The Money Maker
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2012
#41 Posted : Friday, May 06, 2011 12:21:09 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Impunity wrote:
@wazuans seems like I have been grossly misquoted.
I didnt mean to lock out small investors per se, but for the small investors to join hands in investment groups so that the share price does not pull a safcon on us;the share should be a bit rare.


@Impunity, we were not that serious, we knew what you meant but my opinion is different. If the company fundamentals are strong and the offer is as low as 1 bob then it will hold. By now I believe scom small individual investor's shares have been mopped up by larger investors yet the price is still way below the IPO offer price and I doubt a share consolidation will help improve the price.

BBI will solve it :)
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the deal
#42 Posted : Friday, May 06, 2011 4:17:24 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
British American Investment Company Kenya IPO: Initial Coverage
Synonym: Britak

Who is Britak?

Britak started its operations in Kenya in 1965, since then the company has grown from strength to strength, today it has 14 branches spanning across all major towns in Kenya and recently opened a new branch in Uganda. Britak is the holding company of two insurance companies and an asset management firm. It owns an 11% strategic stake in both Equity Bank and Housing Finance; both firms are listed on the financial segment of the Nairobi Stock Exchange (NSE). The company has also invested close to Ksh 2 Billion in Britak Unit trust funds
Reasons for the IPO

Ø Embark on a regional expansion programme i.e. they want to enter Rwanda, South Sudan, Tanzania and Uganda. In fact they aim to be operational in Tanzania before the end of 2011
Ø Use the IPO funds to take up new emerging opportunities as they arise
Ø Beef up their property portfolio

More IPO disclosures
None of the present shareholders will be selling their shares, thus their stakes are subject to dilution by the new shares that will be created. There will also be a lock in period.

Britak as an Investment Case

Britak 5 year Financial Highlights (Ksh Billion)
Ø
Premium income up 114% from 2B to 2.3B in 2010
Ø Assets under management up 840% from 1.8B to 17B in 2010
Ø Total ASSETS up 273% from 6.7B to 25.3B
Ø Shareholder Funds up 673% from 1.3B to 10B in 2010

More Britak Financial disclosures

Full Year 2010 Earnings Analysis

Ø Profit Before Tax of 2.87b vs a loss of 0.34B in 2009
Ø Profit After Tax of 2.7B vs a loss of 0.43B in 2009
Ø Earnings Per Share 5.76-calculated by dividing the PAT by the number of outstanding ordinary shares. Britak has 480 Million issued shares
Ø Book Value=Ksh 20.8-Calculated by dividing the shareholder funds by the number of outstanding shares.
Ø As of December 2009 they had Ksh 1.5 Billion in Government securities earning an interest of 11.7% per annum, Ksho.57 Billion of those are held to maturity
Ø As of December 2009 they had Ksh 3.2 Billion in quoted investments
Ø AS of December 2009 they’re property portfolio was worth Ksh 1.2 Billion

Entire article here http://contrarianinvesti...investment-company.html Comments and suggestions appreciated.
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youcan'tstopusnow
#43 Posted : Friday, May 06, 2011 4:40:11 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Thousands of 'Wanjikus' never stopped Kengen's meteoric rise
GOD BLESS YOUR LIFE
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mlennyma
#44 Posted : Friday, May 06, 2011 4:45:09 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,191
Location: nairobi
Is it inorder for a company that has not made profit for five consecutive yrs to list?
"Don't let the fear of losing be greater than the excitement of winning."
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hisah
#45 Posted : Friday, May 06, 2011 5:07:34 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
mlennyma wrote:
Is it in order for a company that has not made profit for five consecutive yrs to list?


I thought the CMA rules state 3 consecutive years.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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mlennyma
#46 Posted : Friday, May 06, 2011 5:16:02 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,191
Location: nairobi
If as per the above report britak made 0.34b loss in 2009,even the 3yrs are not over.
"Don't let the fear of losing be greater than the excitement of winning."
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2012
#47 Posted : Friday, May 06, 2011 6:22:10 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
mlennyma wrote:
If as per the above report britak made 0.34b loss in 2009,even the 3yrs are not over.


Ohh... I had heard sometime around when they made the announcement (kido Feb) that 2009 was considered a global financial crisis year and hence won't count for companies listing and not just in Kenya. Is that true?

BBI will solve it :)
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the deal
#48 Posted : Friday, May 06, 2011 8:52:57 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
mlennyma wrote:
If as per the above report britak made 0.34b loss in 2009,even the 3yrs are not over.

Read the entire report...from 2006 to 2010 they only made a loss in 2009 n u know the reasons...those numbers are so mind blowing...how the heck they remained unlisted i dont...but i guess the Equity Big boys wanted the. shares before listing...in fact the dilution will be so insignificant to them.
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QW25071985
#49 Posted : Friday, May 06, 2011 9:57:08 PM
Rank: Veteran


Joined: 3/25/2011
Posts: 946
it feel so guy to be holding kcb. @ VVS dnt shoot urself when you read this.i read u are ANTI-k.c.b bank

http://www.bloomberg.com...it-in-2011-ceo-says.html
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VituVingiSana
#50 Posted : Saturday, May 07, 2011 8:24:33 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,224
Location: Nairobi
[quote=QW25071985]it feel so guy to be holding kcb. @ VVS dnt shoot urself when you read this.i read u are ANTI-k.c.b bank

http://www.bloomberg.com...t-in-2011-ceo-says.html[/quote]Well, good for KCB... I am gonna stick with Equity whose units all made money in 2010...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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the deal
#51 Posted : Saturday, May 07, 2011 10:50:01 AM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
@Hisah will you be attending the AGM next Tuesday @ the Hilton? It will be good to compare their memo to my report...especially the pricing too...will it below 30 bob?
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QW25071985
#52 Posted : Saturday, May 07, 2011 11:33:01 AM
Rank: Veteran


Joined: 3/25/2011
Posts: 946
the deal wrote:
British American Investment Company Kenya IPO: Initial Coverage
Synonym: Britak

Who is Britak?

Britak started its operations in Kenya in 1965, since then the company has grown from strength to strength, today it has 14 branches spanning across all major towns in Kenya and recently opened a new branch in Uganda. Britak is the holding company of two insurance companies and an asset management firm. It owns an 11% strategic stake in both Equity Bank and Housing Finance; both firms are listed on the financial segment of the Nairobi Stock Exchange (NSE). The company has also invested close to Ksh 2 Billion in Britak Unit trust funds
Reasons for the IPO

Ø Embark on a regional expansion programme i.e. they want to enter Rwanda, South Sudan, Tanzania and Uganda. In fact they aim to be operational in Tanzania before the end of 2011
Ø Use the IPO funds to take up new emerging opportunities as they arise
Ø Beef up their property portfolio

More IPO disclosures
None of the present shareholders will be selling their shares, thus their stakes are subject to dilution by the new shares that will be created. There will also be a lock in period.

Britak as an Investment Case

Britak 5 year Financial Highlights (Ksh Billion)
Ø
Premium income up 114% from 2B to 2.3B in 2010
Ø Assets under management up 840% from 1.8B to 17B in 2010
Ø Total ASSETS up 273% from 6.7B to 25.3B
Ø Shareholder Funds up 673% from 1.3B to 10B in 2010

More Britak Financial disclosures

Full Year 2010 Earnings Analysis

Ø Profit Before Tax of 2.87b vs a loss of 0.34B in 2009
Ø Profit After Tax of 2.7B vs a loss of 0.43B in 2009
Ø Earnings Per Share 5.76-calculated by dividing the PAT by the number of outstanding ordinary shares. Britak has 480 Million issued shares
Ø Book Value=Ksh 20.8-Calculated by dividing the shareholder funds by the number of outstanding shares.
Ø As of December 2009 they had Ksh 1.5 Billion in Government securities earning an interest of 11.7% per annum, Ksho.57 Billion of those are held to maturity
Ø As of December 2009 they had Ksh 3.2 Billion in quoted investments
Ø AS of December 2009 they’re property portfolio was worth Ksh 1.2 Billion

Entire article here http://contrarianinvesti...investment-company.html Comments and suggestions appreciated.



you are making my broker look like kindergarten. smile smile gud report ..
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bartum
#53 Posted : Saturday, May 07, 2011 12:12:55 PM
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Joined: 8/11/2010
Posts: 1,011
Location: nairobi
@deal we appreciate the good work you are doing. Keep it up.i love wazua and your blog.
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invest0r
#54 Posted : Saturday, May 07, 2011 12:46:31 PM
Rank: Member


Joined: 12/15/2010
Posts: 162
fantastic work @deal. Your blog is also becoming a book mark to many.
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the deal
#55 Posted : Saturday, May 07, 2011 2:03:31 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Thanks guys...lets keep the Wazua spirit burning...hehehe now u knw Equity and Britak are so damn related...uhmm JM Mwangi...P Munga...J Mbaru...W Wairegi...but the Chairman is a Mzungu...British American Mauritius owns 36% of the shares.
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gatoho
#56 Posted : Saturday, May 07, 2011 2:15:17 PM
Rank: Member


Joined: 1/1/2010
Posts: 518
Location: kandara, Murang'a
Muthawamunene wrote:
Impunity wrote:
They should limit amount of investment to kindu 100K to bar off kina wanjiru.

have u ever read George Orwel's 'The Animal Farm'?. You post reminds my of the phrase, 'all pigs are equal, but some pigs are more equal than others'. Now am not calling any one a pig, well may be our mp's, but lets give kila mtu a chance , even wanjiku. If she sells the next day, then u can buy her share. After all, the buyer is always in controll.



All animals are equal.. but some more than the others.. but then i read this in class 6 so stand to be corrected
Foresight..
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PKoli
#57 Posted : Saturday, May 07, 2011 2:15:33 PM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
@deal,

Thanks for the good analysis. Do you have an idea whether they will invest in the region through start-ups or acquisitions?
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hisah
#58 Posted : Saturday, May 07, 2011 4:14:27 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
the deal wrote:
@Hisah will you be attending the AGM next Tuesday @ the Hilton? It will be good to compare their memo to my report...especially the pricing too...will it below 30 bob?


I'm currently not in the country. Got to know about the AGM since I'm a member via the money market product.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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the deal
#59 Posted : Sunday, May 08, 2011 9:54:47 AM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
PKoli wrote:
@deal,

Thanks for the good analysis. Do you have an idea whether they will invest in the region through start-ups or acquisitions?

The MD clearly stated start ups in interview with the BD but he didnt rule acquisitions...Britam(UG) is a start-up.
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Aguytrying
#60 Posted : Sunday, May 08, 2011 11:52:41 AM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
nice article, the deal, gives me goosebumps just reading it. Money maker?....i think so.
The investor's chief problem - and even his worst enemy - is likely to be himself
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