DBI Prospectus, Misleading/Bogus Yield?

Hi All,

Had a look at this companies prospectus after it's flop listing. Thought it might be value for a 7% yield, but looking into it, this seems like a scamlisting, destined to fail. They have 2.1 billion in debt, with around 4-5% interest (100 million repayments annually), and EBITDA of 183 million.

They claim a 7% yield on listed IPO Market Cap. Or $90 million per year. This doesn't appear remotely achievable in their prospectus.

Their own forecasts seem to suggest they are just paying dividends from debt.




For starters, they expect only 26.7 NPAT, after restructures, refinancing and so on. Even if we assume you can include the full D&A as free cash (which we can't), they end up with just 49.4 free cash flow before financing (inflows).

As per the below, they themselves only expect operating cash flow before financing of 44 million, and they also appear to have sustaining capex around the 30 million mark.

To get to a Net cash flow before distributions of 67.5, 22.5 below the cash flow required to fulfil their promised dividend, they borrow 23.5 million...

All in all, I'm not sure how they can get away with claiming a 7% yield (90 million) is achievable, when their own prospectus suggestsotherwise.



Don't usually post on shares which I decide are on the blacklist for me, but this just seems like a brookfield scheme to offload a shoddy investment onto unsuspecting retail investors with the promise of fantasy yields.

Let me know if there's anything i've missed.

DYOR