Indies Pharma goes to market on Thursday to raise $248.4 million from 174 million shares for its own use while the current shareholders are offering 92.5 million units to raise nearly $139 million.
Only 60 million shares are set aside for the general public. The shares are mostly priced at $1.50 each with lower prices for shares reserved for selected groups. The proceed is expected to be used to pay off loans to its parent company and bank loans, working capital and funds the cost of the issue. The total issued shares currently amount to 1,158,553,500 units and the issue of 173,983,149 shares, if successful will raise the total issued shares to 1,332,536,649 units.
Indies Pharma is a pharmaceutical distribution company out of Montego Bay, which sold its first pharmaceutical 2005, and today distributes over 150 prescription and over the counter pharmaceutical formulations for Bioprist Holdings under the ‘Bioprist’ brand and operates the Trident Pharmacy located nearby in Sam Sharpe Square, Montego Bay. The Company currently services customers across all 14 parishes of the island, including over 400 pharmacies, private and public hospitals and government agencies including the National Health Fund as well as medical practitioners, and directly to individual end users.
Based on how investors have gone about pricing IPOs at their peak, it seems likely that Indies Pharma will peak around $2.45 based on IC Insider.com’ projected earnings in 2018, of 17 cents per share. It could even go higher if the number of applicants for shares exceed those Junior Market IPOs from those going back to 2017.
The stock sits in the mid-range of IC Insider.com’s ranking of Junior Market stocks with a PE of 9, just a bit less than the average of 11 for the market but most IPOs have traded around 15 times the current year’s earnings at the peak reached within 2 weeks or so.
Indies is not the cleanest entity to come public in recent years. The prospectus shows that there are clear areas of management weakness that need sorting out, but they are not alone, Elite Diagnostics exhibited some similar traits in spite of having men with business experience as board members. The promoters and directors should never have allowed the prospectus to be put out with scanned copy of the audited accounts from the book issued by the auditors. It does not telegraph a good message about management.
The financials are strong but here again it reflects concerns. The statement of Financial position show amount dues from directors standing at $166 million per the half year report. Under the tax laws of Jamaica such amounts may be taxable if not repaid within a certain time frame as the amount would be treated as a distribution. Its is unclear if this issue is addressed in the prospectus.
The company has some strong positives. At the end of October 2017 borrowed funds exceeded shareholders’ equity this has changed by April this year with equity of $374 million well ahead of debt of $194 million. For one Gross profit which has been running between 75 percent to 62 percent between over the past five years with the half year to March coming out at very strong 62 percent, revenues grew an average of 15 percent for the past 4 years but only 6 percent in 2017 but is up by 10 percent for the half year to April. The company has been able to keep cost well under control and this has enable a richness in profitability with pretax profit rising 56 percent in 2017 89 percent in 2016 and 154 percent in 2015 after a 25 percent increase in 2014. The profit for 2016 would have been even better if there was not a loss on sale of fixed asset in the 2017 period amounting to $32 million but the rise in 2017 would likewise be less.
For the half to April this year revenues rose 10 percent to $301 million over the similar period in 2017 but profit is only up 6 percent to $73 million from $69 million before tax. IC Insider.com forecast is for a 16 percent increase in pretax profit to $200 million for the current year. The company could pick up additional sales as a result of the publicity that emanates from the listing.
going forward the slow seen in revenues in 2017 to date has to be watched as that could suggest maturing of the company but they have a long pipe line of applications in to add products to the existing lines.
Indies Pharma could make you money
Losing stocks sink TTSE – Wednesday
The Trinidad & Tobago Stock Exchange closed Wednesday with trading in 17 securities against 14 on Tuesday, with 3 advancing, 5 declining and 9 remaining unchanged.
At the close, the Composite Index lost 7.63 points to 1,220.29, the All T&T Index declined 1.93 points up to 1,719.60, while the Cross Listed Index erased 1.85 points to close at 96.79.
Trading ended with 796,321 shares valued at $16,954,112 changing hands, compared to 974,038 shares valued at $8,355,811 changing hands on the previous trading day.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 3 stocks ending with higher bids than the last selling prices and 3 with lower offers.
Gains| Clico Investments closed with a gain of 1 cent and closed at $20.53, with 214,482 stock units changing hands, National Enterprises gained 2 cents and concluded trading at $9.55, with 86,248 stock units changing hands and Trinidad & Tobago NGL finished trading with 15 cents rise to $29.75, after 26,290 stock units changed hands.
Losses| First Caribbean International Bank share fell 40 cents and ended at $8, with 300 units changing hands, First Citizens closed with a loss of 10 cents and completed trading at $34.91, after exchanging 23,702 shares, Guardian Holdings shed 39 cents and ended at $16.60, with 12,162 units, JMMB Group lost 1 cent and settled at $1.75, after exchanging 101,000 shares and Unilever Caribbean ended trading 1 cent lower in trading at $26.75, after exchanging 16,289 shares.
Firm Trades| Ansa Mcal ended at $58, trading 115 units, LJ Williams A share ended at 20 cents, with 80,000 units, Massy Holdings settled at $47, after exchanging 4,428 shares, NCB Financial Group traded 10,000 shares at $5.35, One Caribbean Media settled at $12, after exchanging 95,645 shares, Prestige Holdings ended at $10.01, with 5,000 units traded, Sagicor Financial concluded market activities at $7.80, with 4,110 stock units changing hands, Scotiabank ended at $65.10, with 107,460 units and West Indian Tobacco settled at $87, after trading 9,090 shares.
Prices of securities trading for the day are those at which the last trade took place.
All Jamaica Index at record 340,000
The Jamaica Stock Exchange All Jamaica Composite Index has now broken into the 340,000 points level for the first time in the market history.
After 45 minutes of trading, the All jamaica index rose 2,110.74 points to trade at 340,190.28 and the JSE main index rose by 1,923.12 points to end at a record 309,951.76. The move is in keeping with technical signals that was evident for some time and pointing to the main market poised for a big rally, with the first major resistance being around 365,000 points.
If the market holds up at these levels at the close, it would be it would be the third record for the week so far.
The continued record run in the main market is the best confirmation that business persons and individuals confidence are at record high levels currently as the market is the most current read on confidence levels in the country.
Modest changes for TTSE stocks – Tuesday
The Trinidad & Tobago Stock Exchange closed Tuesday with trading in 14 securities against 13 on Monday, with 6 advancing, 4 declining and 4 remaining unchanged.
At close of the market, the market indices barely moved from the close on Monday. At the end the Composite Index lost 0.06 points to 1,227.92, the All T&T Index inched 0.08 points up to 1,721.53, while the Cross Listed Index erased 0.03 points to close at 98.64.
Trading ended with trading much greater than on Monday as 974,038 shares valued at $8,355,811 changed hands, compared to 95,555 shares at a value of $1,642,849 changing hands on the previous trading day.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 2 stocks ending with higher bids than the last selling prices and 5 with lower offers.
Gains| the market closed trading with First Citizens rising 1 cent to settle at $35.01, after exchanging 111 shares, JMMB Group added 1 cent and concluded trading at $1.76, after exchanging 1,096 shares, LJ Williams B Share increased 1 cent and settled at 69 cents, after exchanging 7,246 units, Prestige Holdings rose 1 cent in trading 719,770 units to close at $10.01, Scotiabank closed with a gain of 9 cents at $65.10, with 450 units changing hands and Unilever Caribbean gained 1 cent and settled at $26.76, after exchanging 417 shares.
Losses| Grace Kennedy shares fell 2 cents and ended at $2.90, with 229,463 stock units changing hands, Massy Holdings closed with a loss of 19 cents and concluded market activity at $47, after exchanging 732 shares, Sagicor Financial shed 1 cent and ended at $7.80, with 1,000 stock units changing hands and Trinidad & Tobago NGL lost 10 cents to close at $29.60, with 8,079 stock units changing hands.
Firm Trades| Agostini’s ended trading at $21.10, after exchanging 3,330 shares, Ansa Merchant settled at $40, trading 1,812 shares, One Caribbean Media concluded trading at $12, after exchanging 500 shares and Republic Financial Holdings ended trading at $102.76, after exchanging 32 shares.
Prices of securities trading for the day are those at which the last trade took place.