VLM - Valemus Limited

[jojoventure]

Well yesterday the prospectus for the Valemus IPO was lodged.

Valemus includes the civil engineering companies Abi Group, Baulderstone and Conneq.

Its owner, German Company Bilfinger will sell 100% of its position in the IPO.

What do people think about the outcome of this IPO?

On my part I work in conjunction with Baulderstone. I see the company in general as well managed, but maybe not so profitable in general.

I also am always very aware, even distrustful when a company wants to sell all its shares in a company in the initial IPO. Doesn't show much confidence in the long term prospects.

On the other hand the construction sector is in general bound to due well, Baulderstone has been securing large highway upgrades lately and is bound to get more large jobs from the government inthe ST to MT.

 

[skc]

Re: VLM - Valemus IPO

Well yesterday the prospectus for the Valemus IPO was lodged.

Valemus includes the civil engineering companies Abi Group, Baulderstone and Conneq.

Its owner, German Company Bilfinger will sell 100% of its position in the IPO.

What do people think about the outcome of this IPO?

On my part I work in conjunction with Baulderstone. I see the company in general as well managed, but maybe not so profitable in general.

I also am always very aware, even distrustful when a company wants to sell all its shares in a company in the initial IPO. Doesn't show much confidence in the long term prospects.

On the other hand the construction sector is in general bound to due well, Baulderstone has been securing large highway upgrades lately and is bound to get more large jobs from the government inthe ST to MT.

Bilfinger may have decided to sell for a large number of reasons. They may need some cash for their own balance sheet, or they just wanted to exit Australia and focus at home, or may be just that the investment banker's power point slides were just too persuasive!

Anyhow will be interesting to see how they price the float. I can imagine it having a PE multiple at some discount to Leighton... unless VLM has really good firm growth prospects. For the record LEI is trade at PE ~15

 

[matty77]

Re: VLM - Valemus IPO

This one should be interesting.

Does anyone know why they would offer it to commsec members only?

Considering all the money the federal government is wasting on construction at the moment you would have throught this industry would be booming????

 

[oldblue]

Re: VLM - Valemus IPO

Here's Greg Hoffman of Intelligent Investor's opinion.

http://www.smh.com.au/business/value-in-valemus-float-20100616-yf12.html

Given the size of the offer I wouldn't have thought it would be restricted in any way nor that it would be too difficult to get some. But then I havn't read the prospectus and won't be doing so. Too many other interesting possibilities at present.

 

[matty77]

Re: VLM - Valemus IPO

Here's Greg Hoffman of Intelligent Investor's opinion.

http://www.smh.com.au/business/value-in-valemus-float-20100616-yf12.html

Given the size of the offer I wouldn't have thought it would be restricted in any way nor that it would be too difficult to get some. But then I havn't read the prospectus and won't be doing so. Too many other interesting possibilities at present.

So we're on the eve of an industry downturn; a precarious position for any investor in a cyclical business such as this. Valemus has benefitted mightily from the government's stimulus spending and our fear is that today's buyer might be paying up for yesteryear's government-assisted revenue.

Float investors are relying on BIS Shrapnel's expectation of a pick-up in private demand to offset decreasing public spending over the coming few years. We're all hoping for that to happen; it's what last year's Keynesian "pump priming" was all about. But if it fails to materialise, Valemus' share price will be vulnerable.

this is what I was thinking, once the stimulus starts to slow so will the contruction industry you would have thought....

 

[oldblue]

Re: VLM - Valemus IPO

Far from restricting shares in this float, a lack of appetite has caused promoters to defer (cancel) the IPO.

http://www.theaustralian.com.au/bus...moil-hits-demand/story-e6frg8zx-1225888692377

That didn't surprise me.