good reading...22 May 2013 14:08
example post taken from ADVFN :
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This is how I see the RTO panning out (all my opinions and best guesses of course)...
P.E. valuation of £8m/£9m (established by a broker-valuer, eg. Peterhouse), discounted for the purpose of the flotation/rto to = £3.5m.
Existing NEOS equity = £1m (0.5p/share)
New equity, to raise working capital = £0.5m
M/Cap at completion = £5m (of which only 30%/£1.5m in free float).
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This does not attach any enterprise value to NEOS existing business/assets (which are substantial and could be worth well in excess of £10m). Nor does it attach any value to the b/f tax losses, usable by the enlarged company.
Additionally Private Energy will be upwardly re-rated as a listed company. For example a private company on a p/e of 4, would typically acquire a p/e of 8 as a fully regulated public company.
Accordingly I could see this £5m company (they may well also change the name in the process) quickly re-rating to £20m following re-listing. Of this £4m would be attributable to current NEOS shareholders, or 4.7 x the current value.
Over a year or two I can see this growing into a £100m+ company.
All IMPO/DYOR/NAI
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makes for good reading......