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BT Investment Share Offer

Discussion in 'Shares' started by tropic, 27th Nov, 2007.

  1. tropic

    tropic Well-Known Member

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    As a Westpac shareholder I received Bankers Trust share offer.
    I like to know if anyone here thinks it is a good investment.
    The price will range from 4.80 - 5.50/share.
    The PE ratio (based on earnings per share) is 32.7 - 37.4 times, based on cash earnings per share is 16.8 - 19.3 time.
    I honestly don't know what's the difference between the two?
    Either way it doesn't look cheap. Having to say that it only opens to Westpac shareholders so it should list at a premium.
    Is this going to be a repeat on Platinum?
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi Tropo,

    Only time will tell.

    Cheers,

    Dan
     
  3. Simon

    Simon Well-Known Member

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    Often big name companies are worth buying at float for a stag profit - do you know what the demand will be like?

    Platinum did wonderfully at float but the price soon dropped to the initial float price. So they may be best sold quickly.

    Just my thoughts and I am no expert. I think I would buy the max and then sell on day one or two.

    Cheers,
     
  4. Tropo

    Tropo Well-Known Member

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    Hi Dan,
    I suspect that you are talking to a wrong person.:p:D
     
  5. AsxBroker

    AsxBroker Well-Known Member

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    Hi Tropo,

    Yes, it was to Tropic...

    lol
     
  6. Tim

    Tim Well-Known Member

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    I follow IPO's to some degree and went in this one. I have read that while the share market is not at its very best time for floating managed funds (especially compared to the time of the platinum float) that the BT one will be over subscribed and therefore not bad - my goal is to sell on day one.

    I think if you look at stats about 80% of this years floats have a premium on listing and about 80% are at, close to or below their list price after several months.

    Tim
     
  7. Rod_WA

    Rod_WA Well-Known Member

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    I just put in for this; I too intend to take a stag profit. I've followed a fair bit of commentary and I expect it will open up.
     
  8. thinkbig

    thinkbig Member

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    I was interested but my SMSF is the shareholder. And I want the allocation in my DT. Is this possible do you think ? (sorry bit of a noob at this).
     
  9. pthm

    pthm Well-Known Member

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    Westpac today closed the BTIM offer - before the closing date of 3rd December.

    2007-Nov-28 07:25 PM
    Westpac Banking Corporation has closed the part of the initial public offer (IPO) that was open to its shareholders for BT Investment Management Ltd's initial public offer, due to the strong flow of applications

    The offer was scheduled to close on December 3 but was closed on Wednesday (Nov 28) just prior to midday.

    BT chairman Brian Scullin said the offer received strong support from Westpac's shareholders who were interested in gaining exposure to Australia's fast-growing funds management industry via an investment in BT.
     
  10. Rod_WA

    Rod_WA Well-Known Member

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    With the WBC shareholder offer closing early, does that mean that
    (a) there is a lot of interest, and there should be a good stag profit, or
    (b) there are a lot of stag profiteers who are all going to flood the sell gate and shoot themselves in the foot?
    Hopefully (a), for my sake!
     
  11. DaveA

    DaveA Well-Known Member

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    Well compared to platnium there is more chance of A than B. Closing the share offer early (and being precise in the time) indiciates that everyone who applied may have got full allotments and there wont be people with the 300 shares issued like in PTM which will flood the market.

    It will be a nice premium espically if it lists somewhere in the ASX200. As index trackers will need to purchase it on the market as they couldnt buy it via a institutional offer
     
  12. Rod_WA

    Rod_WA Well-Known Member

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    I'm itching, I have to wait a week for the bookbuild and then announcements. I've taken a bit of a risk on this one, and subscribed for $80k, about two times what I would normally put on the line, but with the BT brand and magnitude of funds under management, this is not a fly-by-night IPO.

    My plan is to sell half at the open, and monitor the other half over days, perhaps weeks. I might even keep about $20k worth long term.
     
  13. tropic

    tropic Well-Known Member

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    I didn't end up applying for the float.
    But thinking back I should have. I think it will have a different result from Platinum float that I still hold.
    BT is a much better known brand than Platinum and it's included on financial planners choices and will be a better supported company. It will have a better inflow of fund. Also with the seperation from Westpac it will encourage the best people to stay with BT because of a better renumeration terms.
    Platinum is a more specialised fund.
    I feel BT in a short/medium term will be trade at a better premium (higher P/E). That's my crystal ball (a bit late for me but you never know).
     
  14. bundy1964

    bundy1964 Well-Known Member

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    I notice on this months LVR list it is opening at 60%. PTM is 70 from memory?
     
  15. tropic

    tropic Well-Known Member

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    Can someone explain wht BT is on deferred settlement?
    What is the purpose of this?
    I have seen few IPOs that traded on deferred settlement when first listed but never really understand why.
     
  16. DaveA

    DaveA Well-Known Member

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    any one interested that it was at a discount. I think that would surprised a few people to be honest....
     
  17. bundy1964

    bundy1964 Well-Known Member

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    You went in with a parcel order that had no fixed price, just a parcel size of 5K increasing in 2.5K jumps that was also subject to a scale back.

    Fairly hard to say on the day you have exactly x number of shares so they do a rear cover and make them deferred. Once you know the offer price and any scale back you can work out how many you have.

    In my case it was none as by quick and dirty calculations it seemed to be roughly valued tp be the same as it's peers. Lack of a stag profit points to me being right :eek:
     
  18. tropic

    tropic Well-Known Member

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    Thanks for the explanation.
    Is this really aimed for people that want to short sell?
    Doesn't we know on the day how many we have before the market opens?
    Is this example I would have known how many I got before I can start trading?
     
  19. ASF

    ASF Member

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    Hey guys, I'm hoping that if anyone bought or subscribed to this offer that they sold straight away cos right now it's down over 40%! It's just one of many stocks though so I'd imagine anyone who went in on IPO's pre-Jen/Feb of this year would be struggling..
     
  20. Rod_WA

    Rod_WA Well-Known Member

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    I was allocated $27k, and sold $17k at $4.82, then offloaded the rest at $4.30 ('fortunately' my stop was hit a few days before Jan 22, when the shares dropped to about $3.30).

    All told I burned about $1500 including cost of funds.
    Not the result I wanted, but not a big drama for me.