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But they have many other holdings that will also perform. usually some of the cleverest people in the room.
Thanks YHAL. I thought that might be the case. I hold my shares in a trading account so it doesn't affect me.
As you probably know KKR is a huge PE/VC operation that is probably 1,000 (or more) times bigger than IQG so investing in KKR directly won't give you much visibility into IQG's own performance.
ISA/LISA/SIPP from a standard online platform provider is unlikely to allow a private off market holding and not clear if any would allow part of your holding to be converted. You might want to look at buying KKR instead and at least you can trade it and keep an eye on it online.
Qd22, I agree that it is frustrating that the company is being taken private at such a small premium.
When the time comes it needs to be an all or nothing declaration - ie you sell all your shares at 480p or you hold on to all of them. You can't opt for 50/50 or anything like that. That is another frustration.
But as I like the company, have a long investment horizon and I am curious to see where the privatisation leads, I do want to hold on to a small number of shares. Therefore I am progressively selling the bulk of my holding in the market at around 465p-470p to leave a small residual number that I will take a punt on through the privatisation process.
One more thing - KKR has talked about investing significantly in the company so there will presumably be several rights issues / share subscription opportunities coming up. So there might well be a chance to increase your shareholding in the future although whether this will represent value or not will be very hard to judge. So just a small punt for me.
Also, I have no idea how all this will affect an ISA/LISA holding. So please DYOR on this.
Thank you for your time STLife. The clarification of the position is helpful. I'm up 55% now at 467, on my fairly small holding. Not to be sniffed at. Fortunate. I'll probably let it all go at 480. I can do without the complications and unknowns of private companies: a world I don't know at all. Just angry at what seems wrong to me.
If you go to the Offer Document on the IQ Geo website you can find the NM Rothschild valuation of Topco. Look under Alternative Offer Documents - Rule 24.11 Letter.
It's full of caveats but the key section reads:
"The Estimated Value
On the basis of and subject to the foregoing, it is our view as at the date of this letter that the Estimated
Value of a Topco Investor Share is within a range of 3,370 pence – 3,900 pence (implying 337 pence –
390 pence for the Alternative Offer per IQGeo Share). This Estimated Value implies an enterprise value
of £217.5 million to £254.3 million at the bottom and top of the range respectively, after adjusting for the
IQGeo net debt position as set out in the sources of information and bases of calculation in paragraph
13.1.3 in Part Seven the Scheme Document."
Personally I think this is a totally meaningless figure. Why would KKR offer 480p if the true value of the shares is really 337-390p? Instead it is NM Rothschild (understandably) avoiding sticking it's neck out.
But there is no question that if you opt to retain your shares instead of taking the 480p offer you are taking on a big risk.
Personally, as I mentioned in another thread, I'm going to sell 70% of my shares in the open market and opt to go along for the ride with the remaining 30%.
Bidco/Topco are standard names used in these situations. Don't read anything into them.
I agree it's frustrating that a company that really seemed to be going places is being taken private in this way. Particularly as the bid price is not that much higher than where the shares had been trading recently. But all is not lost. You do have the option of retaining your shares in the company although as a (presumably) small minority shareholder in a private company you won't have much say in the way it is run.
My guess - and it is only a guess - is that the buyers (KKR) will invest a considerable amount into IQG over the next 5 years to try to make it a big global player in its market. Then, when the time is right, they will have an IPO (maybe in the US where valuations are higher) to cash in on their investment. Small shareholders such as you and I can ride on the back of this by opting to keep our shares rather than selling them at the 480p bid price.
BUT - we will be locking our money up for an indefinite period, there will probably be cash calls on us to help fund the development of IQG (which presumably we can decline although that will mean dilution of our holding) and it's quite possible the whole project will run into obstacles. So it's a big risk.
For me, I'm going to sell 70% of my shareholding in the market at a good profit (I was lucky enough to start buying in a few years ago at 70p) and take a punt on the privatisation/future IPO route I outlined above actually coming to pass. with my remaining 30%. This 30% could easily go to 0, but I think there is also a chance of it doubling or trebling 5 years down the track if things go well.
These are just my personal views. It's a high risk route. The safer option is to take the 480p offer and hopefully make a bit of a profit on that. As always DYOR.
Have to say I really hate this. As a PI with no experience of the business world, it's great to have found a share which really seems to be going places in a sector that benefits the world in moving forward - and which is doing well for me. Coming nicely into profit, great product, net cash, what's not to like? After previous bitter experience it's important that no shareholder or group owns more than half so can do what they want and take a good business private for their own greed. Then what? It's STILL taken private, and cheaply given how it's growing. And what is this Bidco/Topco - I'm suspicious. Is it the usual rip off? Have I misunderstood? I wonder what's in it for the big shareholders? They can't be THAT blind to the prospects. So........ why???
Today's cash offer of 480p per share comes as a welcome surprise. BUT - it doesn't seem overly generous for a fast growing company such as IQG. It's a recommended offer so I doubt there is much chance of it going higher unless a rival bidder appears. Let's hope so!
There is an alternative which is to take unlisted shares in the bidding company. Maybe that is interesting? I'll need to look into the terms.
Anyway, good news even if the offer seems a bit low.
IQG, has begun a retracement, as in this case signalled by the lower Bollinger band turning up. Support can be expected at previous price highs, between 390-395. The uptrendline is in the same area, reinforcing the probability, of the retracement bottoming out. I would not discount the even number 400, for support. Often a retracement finish, is signalled by the RSI(relative strength index), either crossing above 50, or bouncing from the 50 level.
Impressive fundamentals, pointing upward. Technical position strong as top software sector riser today, on a weak day for the software sector, which fell back into it's 1/3/24, time pivot high/low range.
IQG, secular chart view on all time horizons from 5 year through to 3 month , shows sp, rise from left to right, which supports the very positive fundamentals. Trendline from 31/10/23, is still intact, and volatility based Bollinger bands are separating, indicating faster price action. Price action may slow down when the lower bollinger band stops falling, and begins to rise, in the sane direction as the upper bollinger band.
Small reduction in stake.
Amazing early buy! Congrats. I was not as early as you but bought a lot so things are going well.
I don't think there are skeletons but most dismiss them as expensive by looking in the rear-view mirror rather than ahead. That or they don't put the research in to see what they're building or how their offering beats competitors.
Yes, that was the first question they took. Any idea why IQG doesn't get more coverage on FinTwit etc. as it now has a market cap approaching £300M. Are there some skeletons from the past - before it rebranded as IQG - that has scared everyone away? My first purchase was at 68p on 15 September 2020 btw. Lucky with the timing for a change!
That was my question about the dividends. Thought it was worth getting their thoughts on the subject even if that date was a bit on the early side.
Happy enough that they are focusing on growth as they have been doing a fantastic job on that. Excited to see where they could be in 18 months anyway. I first bought back in July 2021 at 123p, it's #1 in my portfolio and now 34% of it but I've no plans to sell as they have an exceptional software package that will generate global sales.
Yes. I was impressed with the presentation on Investor Meet. No dividends for 18 months or more but that makes sense whilst they are growing the business. Looking good!
Looks like it was an LSE problem and a number if RNSs were released late. Some traders were spooked and sold but IQG is rewarding those that are in for the long-term. Now that breakeven has arrived we should see profits grow well from here as globalisation continues.
Not sure why the Results RNS was a bit late coming out this morning - just a few minutes before the market opened - but at first sight things look pretty positive. SP up to 400p by 08:40h after a slow start.
I've written a Twitter/X thread with my thoughts on IQGeo's recent history and why they could go ballistic from here. DYOR.
https://twitter.com/W13Ken/status/1758200681163260379
IQGeo Group helped Deutsche Telekom accelerate their ambitious FTTH (Fiber To The Home) rollout in Germany > 3m homes per year, with the help of IQGeo’s Comsof Fiber software.
End-to-end planning & design timelines were reduced by 50-90% compared to manual design methods.
https://www.iqgeo.com/blog/how-deutsche-telekom-achieved-rapid-fiber-expansion-in-germany-iqgeo?utm_campaign=Webinar_FTTH_Deutche_Telekom_14Dec23
Cambridge, 8 February 2024 - IQGeo (AIM: IQG), a developer of geospatial software that is “Building better networks” for telecom and utility operators, today announced that it has extended the industry-leading fiber management capabilities of its Network Manager Telecom product to also support copper and coaxial networks.
This marks a significant change for telecom operators with mixed technology infrastructures, as they can now simplify their system landscape to a single management platform and replace their legacy system of record.
“We’re incredibly excited about the continued flexibility we’re delivering for telecom operators,” says Richard Petti, CEO for IQGeo. “We’ve consistently learned from fiber operators that IQGeo’s biggest value is offering a shared platform to manage their lifecycle, from planning, design and construction to operations, sales and marketing. With this new release, we now provide one platform for all technology infrastructure used by telecom networks.”
The latest version of Network Manager Telecom adds new data models for copper and coaxial networks to the existing fiber model, with the ability to document and manage all associated equipment. This is just part of the most recent enhancements of IQGeo’s flexible and comprehensive network management features, which include industry-best field mobility, documenting outside and inside plant inventory, dynamic network schematics, seamless data imports and exports, and labor cost management.
“As with any IQGeo product release, we’ve gone a step further than introducing new network models,” adds Petti. “We’ve also introduced new workflow functionality, such as line of count support for mixed architecture networks and intuitive views of cable-to-equipment relationships.”
“This is simply the latest step in giving our customers the flexibility they need to manage complex network deployments and operations, which is helping them accelerate their time to value and maximize return on investment.”
This is big 😀
IQGeo simplifies telecom landscape with single solution for fiber, copper and coaxial networks.
https://www.iqgeo.com/news-iqgeo/iqgeo-simplifies-telecom-landscape-with-single-solution-for-fiber-copper-and-coaxial-networks-iqgeo
Some solid buy orders are going in at just under 380p today. The SP is very firm. It's not a liquid market but you should be able to sell small quantities of shares (up to 5,000 maybe) without any problem.
IQGeo Group hit an all-time high again today with first sales in ANZ. They have the most compelling network mgmt software for telcos & utilities but up to now were just in America, Europe, and Japan. Going global should see them continue to grow exponentially. DYOR.
https://www.iqgeo.com/news-iqgeo/mondospatial-signs-iqgeo-var-agreement-for-anz-and-secures-first-win
The share price is on the move again today - 330p-340p today - so perhaps this news is filtering through into the market. Or, if we are lucky, some bigger news is on the way.