Monday, 24 September 2012

Astro playing the listed/delisted/relisted game (2)

I blogged before about Astro's listing delisting and subsequently relisting.

The final prospectus dated 21st September 2012 can be found here, part 1 of the listing brochure can be found here.

I have to admit that I am pleasantly surprised about the changes made in paragraph 6.1 (pages 63-65, pdf pages 86-88). Information regarding its listing in 2003, the General Offer price in 2010, the Net Asset Backing per share, Earnings Per Share and EBITDA are all given. Also the reasons for the delisting is given and the restructuring details after the company was delisted, including new products and services and capital expenditure occurred.

I am still not exactly a fan of General Offers (especially the ones with a "delisting" threat) nor of companies that are being relisted so quickly afterwards, but the changes in the prospectus are definitely helpful in understanding what happened the last two years.

I will not subscribe to the IPO. Firstly because I never do that anymore, I prefer to wait about two years after a company is listed until all is settled and the hot air of an IPO has left the valuation. From time to time one misses a good opportunity because of that, but it is more than compensated by avoiding the companies that disappoint after their listing.

Secondly because I find the risk/reward not exactly enticing. The TV industry has had some clear changes during the last 45 years or so, but I expect things to change must faster in the coming years. And I am not sure if those changes will be good for companies like Astro. Being priced to perfection, the upside looks limited while there might be downside if technological changes move against its business model.

Still, I rate the chance that the share price goes up say 5-10% on the first listing day rather high.

NB: I am not a financial advisor, readers should decide themselves after doing their own research, as always.

No comments:

Post a Comment