Ferreti ipo
- Thread starter jrudge
- Start date
jfm
Well-Known Member
Answers in colour Porto
Yes I agree with the last two paras . But you have not put fwd a theory why ? You mean a theory on why they want to IPO? It's normal investment logic: if the stock market will value FG at €1.1bn then that's a good place to raise new money (the "primary" part of the IPO) as well as take profits. If the stock market values FG at €500m it is not. No rocket science here. It is normal Waichei policy to do such IPOs- they have controlling stakes in about 1/2 dozen companies they have IPOed; I work in an investment fund business and so do we.
Even @ €2 he could get out anyhow and if a loss just offset it against the other profitable stuff he has . I see no logic here. A loss is a loss. The fact you have fingers in other profitable pies doesn't make a loss not a loss. Nor does it make the sale of an asset for €500m, when it's worth (in your eyes) €800m, a sensible thing to do with your client's money. In this case client = Chinese state.
But I still think having seen the guy walking about at his show it’s a hobby and he wants somehow to get FG to build a bigger boat for him and similar friends so why not exhaust the availability of various ways of raising cash . This is twee poppycock. You've seen him walk, so you understand big ticket investment thinking.
Obviously if FG have warmed up a take over of a targeted SY builder then and he really wants it to proceed then he’s gonna have to raise the funds by another means , work down the tick box list , on that list somewhere is of course putting you hand into your pocket . Yeah, but that's super normal, so what is your point?
So you guys think he wants out , No we don't think that. He offered the company for sale at €1bn valuation and withdrew it when the bids were €500m. No big deal; it just is. I think he wants to go larger and involve SY s .An itch that needs scratchingHe is/ Waichei are rational investors, not itch scratchers, ffs
Like all hobby’s he will sell up Erm it's not his to sell and it's not a hobby. Waichei's share in FG ultimatley belongs to Chinese government. No doubt he is incentivised by a form of profit share but it isn't his asset. and pack in , but not yet .
Time will tell .
@ Lloydroberts could be any utility product that can’t be done without by consumers and has growth , hasn’t reached its full potential of sales , Institutional investors like security and safety .
Could be other P+G stuff like toothbrushes.Low tech low cost , low price but huge volumes world wide .
Where as a FG boat what guess 375 units / year with fickle markets effected by too many variables and constant competition nicking sales . Risky place Risk is dealt with in pricing; see above. I realise you just don' get this part. If two companies both make £X per year profit, one risky and one fickle, the risky one should be worth less but at the correct price it is still an attractive investment despite the risk. You seem fixated on the theory that risky things are always unattractive, regardless of how they are priced - perfectly fine if you want to think that but it's not how most of the investment planet thinks. . .
Last edited:
MapisM
Well-Known Member
A theory which is beyond a joke, PF.
If Tan Xuguang (which I guess is "the guy" you are referring to) wants a yacht larger than what CRN can deliver, all he has to do is ask.
At Fincantieri they already have all the infrastructures for building anything up to cruise ship size, and I don't see why they shouldn't be happy to build a megayacht jointly with FG, eventually putting whatever sticker the guy prefers on it - be it Ferretti, Riva, or even Weichai, heaven forbid!
They could even build an aircraft carrier for him, if that's the itch he needs scratching and if he asks nicely...
MapisM
Well-Known Member
Agreed, but would you also call IPO withdrawals "normal"?
I mean, preparing an IPO package is not like listing some crap on eBay.
Unless things became much easier and simpler since I was involved with stuff like that (i.e. many years ago, thanks God!), I suspect that several folks who worked around the clock lately must be properly pissed by now...
jfm
Well-Known Member
It’s comedy gold. Guy wants bigger boat due to itch and mates ribbing him. So he plans for his employer to buy a mega yacht builder to build it. Nice work, even in China!
jfm
Well-Known Member
Pulling an ipo late in proceedings due to market conditions isn’t unusual (Formula 1, in 2012, sticks in the mind) but doing a full public price cut and full book build, and then pulling it, is very unusual. It has probably happened before but I can’t think of another high profile example. I guess there were some tough conversations at a very late hour. It will have consequences for owners of other boat builders who must mark-to-market their valuations, or who want to sell (Princess and Sanlorenzo spring to mind, obvs)
MapisM
Well-Known Member
Absolutely.
When I read of the IPO pull, I even wondered if they didn't arrange the whole show just to spoil their competitors chances...
But that's pure "behindology" - a science on which I'd never dare competing with PF! 
When I read of the IPO pull, I even wondered if they didn't arrange the whole show just to spoil their competitors chances...
But that's pure "behindology" - a science on which I'd never dare competing with PF!
