Here are my responses to your points. 1. This was probably the...

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stardestr0yer

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17/09/17

17:21

Post #: 27274053
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Originally posted by MG. ↑

This one looks very appealing and attractive on the face of it.

1. No owner sell down
2. Established revenue growth except in 2016 due to change from Non Digital to Video etc
3. Profit margins nearly doubled from the change in 2016
4.No seed shares or pre IPO shares etc. First ever capital raising.
5.Unbelievably tightly held with more than 80% escrowed at listing
6.1 for 2 free options which will be listed
7.Even though 2016 revenue was down due to the platform shift, EV is 1.8 times 2016 revenue at $40 mil or so. Expected huge revenue increases in 2017.
8. Peers trading up to 8.8 times revenue.
9. Well established clientele and partnerships
10.Management owns nearly 80% with Myspace founder on Board with other big well known founders.

So what am I missing here? Raising $4 mil to$6 mil at 20c with 1 for 2 free 25c attaching listed options.Sanlam Private Wealth ( No Idea who they are ) in the Lead Role.Ppl in the know I request you to contribute to this thread and let us know what are the pitfalls or positives of this IPO. It looks too good to be true at this price.

http://www.copyright link/technolog...er-as-engage-bdr-prepares-ipo-20170901-gy96e4

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Here are my responses to your points.
1. This was probably the most confusing part of all the information I have. I am reading it differently to you. I have a presentation saying no "founder" sell down. I believe this leaves 53 million shares open for sale which going by the sceond screen dump have been given for free?
4. while no seed or pre-ipo capital raising, they have simply given free shares for what they consider fair value is what I understand?

As for who Sanlam is, I have a list of IPO's for the last 2 years and I have them as leading N1 Holdings (N1H) and Todd River Resources (TRT). Both stagged 1st day by about 10%.

So here are my thoughts:
I have big concern looking at their pro-forma balance sheet. After raising the 6mil, their current liabilities are still exceeing current assets by quite a bit? This is not normal to me? Especially considering they are still burning cash as of FY 2016.

Disappointed they have not give half year 2017 results in the prospectus. It was implied to me that they are looking at EBITDA for CY17 of 1.5m? Maybe this is why they are only raisin 6mil and current assets will slowly exceed current liabilities?

EV is 40mil.. seems quite high, but if they can increase their sales and maintain or slightly improve margin we could see a turnaround.

Sitting on the fence at this stage.
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