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The Cantrell & Cochrane flotation

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  • 24-06-2002 7:23pm
    #1
    b20uvkft6m5xwg
    Closed Accounts Posts: 2,695 ✭✭✭


    Anyone planning to buy shares?

    The IPO range was announced last week between €2.60 and €3.60 last week. AFAIK, there is a minimum €3000 value on applications which close on July 9th.


    I have no plans myself, mainly because I wont have time to be watching the market as much as I would like escepially in the days after the flotation. But, even If I had the time I would refrain largely due to the fact they are sitting on a heavy debt mountain and much of the capital raised will go to clearing this. (Not exactly the best way to deploy Capital post a flotation to say the least)
    Also Maurice Pratt has been talkin shíte in trying to distance themsleves from Eircom by claimig thay sell real identifiable goods like crisps and bootles of club orange, which for some reason he believes is a formula for success:rolleyes:

    Anyhoo theres my views on the matter:)


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    #2
    Victor
    Registered Users Posts: 78,370 ✭✭✭✭Victor


    Originally posted by 80project
    Also Maurice Pratt has been talkin shíte in trying to distance themsleves from Eircom by claimig thay sell real identifiable goods like crisps and bootles of club orange, which for some reason he believes is a formula for success

    The problem with that is the market is 'mature' and unlikely to see huge growth (unlike say Comms / IT and Airlines 5 years ago). The management are having the IPO to help C&C and existing shareholders, not prospective shareholders.


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    #3
    b20uvkft6m5xwg
    Closed Accounts Posts: 2,695 ✭✭✭b20uvkft6m5xwg


    The management are having the IPO to help C&C and existing shareholders, not prospective shareholders.

    Precisely.
    I note that they are urging stakeholder suppliers and customers to buy shares as well and very much steering away from the small inverstor if not completley.

    Although I do know one person who is putting in the 3k minimum. TBH, with the poor liquidity in the ISEQ it will be very difficult to dive in and get out on the day itself as he plans to do. Depends who your stockbroker is but I cant see him making a profit.


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    #4
    sceptre
    Registered Users Posts: 19,608 ✭✭✭✭sceptre


    I've no money to put shares in but I'll say this much:

    The company has had an average growth in sales of 12% each year over the past five years.

    On the other hand it's an odd time to be floating. If I had my own company I'd only be floating at this point if I really had to.

    If they can work a turnaround in the attitude to cider in the UK (as they did in Ireland) they could be on a real winner buying in that this point. That's the big question though. the Irish market is fairly mature. No-one questions the value of the brands that C&C own or their ability to take an undervalued brand and make something of it (as with Tullamore Dew) - the question is what can they do in the UK to increase turnover and shareholder value.

    If you believe they can - you would be a fool not to get the shares (which seem fairly valued). If you believe they can't, don't waste your money.


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    #5
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    I won't commit to buying anything without knowing the price. Retail investors (i.e. you & me) in C&C have to commit their money BEFORE the actual flotation price is set. Sure, we have the 'indicitive price range' as a guide, but they don't actually have to stick to this.

    So if you're prepared to buy something without knowing the price, go right ahead & invest in C&C.

    Regards - RainyDay


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    #6
    b20uvkft6m5xwg
    Closed Accounts Posts: 2,695 ✭✭✭b20uvkft6m5xwg


    Its OFF...For the time being at least
    Market weakness sinks C&C flotation
    Drinks and snack foods group C&C, formerly Cantrell & Cochrane, is pulling out of a planned flotation in Dublin and London because of recent stock market weakness. 'In the light of current equity market conditions, the board of directors of C&C Group has decided to withdraw the initial public offering of the company,' a brief statement said.

    Full story here...
    http://www.onbusiness.ie/2002/0708/c&c.html


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    #7
    Victor
    Registered Users Posts: 78,370 ✭✭✭✭Victor


    Originally posted by 80project
    Its OFF...For the time being at least

    I'm sure this is the only reason. :rolleyes:


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    #8
    dahamsta
    Banned (with Prison Access) Posts: 16,659 ✭✭✭✭dahamsta


    There's an article about the IPO in this weeks Phoenix. Course it's moot now, but some of you might be interested in having a poke at it.

    Spoiler: Goldhawk reckoned it was best to stay out.

    adam


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    #9
    b20uvkft6m5xwg
    Closed Accounts Posts: 2,695 ✭✭✭b20uvkft6m5xwg


    Just read it briefly Adam.
    Sure isn't the Goldhawk always right ;)

    --

    In fairness to C&C they couldn't have predicted the arse falling out of S/E's around the world, The Worldcom and Xerox debacles and also the downgrading of ELAN by Wall St.

    I'd be suprised if they float within in the next 24 months or if they review the whole thing. AFAIK, theres a multitude of Co's in the States and the EU that have pulled the plug on similar flotations like C&C admittledly not as close to the deadline as in this case. The general trend ATMis for Privatisation like with Smurfit.

    Interesting anyway to see what will happen:)


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