DIC rights issue phase 2

DIC rights issue phase 2

Postby matrix » Thu 20 Mar 2008 14:53

dear friends,
i would like to know if anyone has any information about the rights issue of Dubai investment company whihc they were suppossed to issue in dec 2007. actually this issue had been declared in 2005 itself and at that time the company had issued rights partly to be given in 2005 itself and the other part in 2007 dec.
matrix
pauper
 
Posts: 4
Joined: Wed 19 Mar 2008 15:00
Location: dxb

DIC Dividend ?

Postby sam111sam » Thu 20 Mar 2008 20:14

Any one know the results of their meeting yerterday /
How much is the DIC Dividend for 2007 ?

Many Thanks
sam111sam
entrepreneur
entrepreneur
 
Posts: 3728
Joined: Sat 15 Mar 2008 10:54

Dividends and rights issue

Postby sharewadi » Fri 21 Mar 2008 12:06

DIC rights issue (but sorry, it's not been updated for a while - I'll update there if I can find more info). Or have a look at the most recent company financial statements - usually the notes will clarify things. Links to statements from ESCA on the (DIC) information page.

I'll add dividend information to the DIC FY 2007 results topic when I find out more. Or if someone else knows, can they update that topic? Thanks :).
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Dubai Investments rights issue phase 2

Postby sharewadi » Sun 23 Mar 2008 09:23

The Dubai Investments BOD meeting on Thusday proposed dividends and a brief comment about phase 2 of the rights issue. So it appears to be going ahead after all. Previous financial statements from DIC seemed to contradict the original rights issue 2 phase proposal, by implying there was only one phase. This is the first I've seen of the second phase.

No closing subscription dates - I assume 16 April 2008 is the opening date, no record date for eligibility.

Rights issue price at par means only 1 dh per share. If this really is new news, DIC shares could head north today.

[source="DIC 19 March 2008"]In view of the proposed right issue (second phase) of shares at par on 16th April 2008 ...[/source]
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Welcome matrix

Postby sharewadi » Sun 23 Mar 2008 09:37

Sorry matrix, I forgot to say welcome ....

... so welcome to the all-the-right-issues-stock-forums :).
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

DIC rights issues PHASE II

Postby matrix » Thu 27 Mar 2008 13:43

thanks friends for all the information on the above
matrix
pauper
 
Posts: 4
Joined: Wed 19 Mar 2008 15:00
Location: dxb

Dubai Investments rights issue phase 2

Postby dessotg » Mon 31 Mar 2008 06:02

DIC audited consolidated financial statements for the year 2007:

27. Share capital and premium
2007 2006
AED’000 AED’000
Issued and paid up:
2,170.7 million shares of AED 1 each (2006: 1,973.4 million shares
of AED 1 each) 2,170,740 1,973,400
======= =======
For the year 2006, the Board of Directors had proposed to issue bonus shares in the ratio of 1:10 (1
share for every 10 shares held). The bonus issue of 197.3 million shares at AED 1 each took place in
the current year.
During 1998, 5,474 unallocated shares were sold at the prevailing market price to an existing
shareholder, at a premium of AED 46,000.
For the year 2007, the Board of Directors has proposed a cash dividend of 10 %.
During the Extraordinary General Meeting held on 13 November 2005, it was resolved to issue right
shares in the ratio of 2:1 (2 shares for every 1 share held) at par. The Company issued right shares in
the ratio of 1:1 in 2006 and the right issue for the remaining shares (858 million shares) is expected
to take place in 2008 at par.


If i get it right, the issue of shares is gonna be for shareholders registered in 2005, regardless if they hold DIC shares at present...? So present shareholders will get 10% cash only!?!
Am i right or.... missing something?!!
dessotg
opportunist
opportunist
 
Posts: 30
Joined: Tue 04 Mar 2008 09:00
Location: Abu Dhabi

Re: Dubai Investments rights issue phase 2

Postby sharewadi » Tue 01 Apr 2008 20:10

dessotg wrote:If i get it right, the issue of shares is gonna be for shareholders registered in 2005, regardless if they hold DIC shares at present...?

That's how I'd understand the financial statements from DIC also. But today there was this on the DFM website from DIC. So I don't know now :? ...

[source="DFM 01 April 2008"](DIC) Apr 1, 2008 - 02:48 PM Dubai Investments: Correction regarding rights issue -2nd phase[/source]
[source="DIC 01 April 2008"]Further to our letter dated 31st March 2008 on the above subject please note that the closing date of the register (settlement date) would be Monday 7th April 2008 and not Sunday 6th April 2008 but the last date of trading for entitlement remains as Thursday 3rd April 2008.

Consequently, the date of commencement of the Subscription would now be Thursday 17th April 2008 and not Wednesday 16 April 2008. All other dates remain unchanged.[/source]
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Percentage of Shares

Postby indigo » Wed 02 Apr 2008 20:02

I read in newspaper adv for the rights issue about 39.8% of share held by stock holder being the ratio to buy rights issue for DIC.

Meaning if you hold 10000 shares you are elligible for 3980 shares @ 1.

If you do the calculations it won't be a good deal.

Will there be reduction in price post rights?

In fact i assume a loss. Prove me wrong....
User avatar
indigo
horse trader
horse trader
 
Posts: 234
Joined: Tue 10 Jul 2007 11:45

Re: Percentage of Shares

Postby sharewadi » Wed 02 Apr 2008 20:12

indigo wrote:Will there be reduction in price post rights?

I would expect so. The adjustment should mean that whatever total value of shares an investor had pre-rights issue, would be about the same post-rights issue.

You should see the adjusted price on Sunday next week since Thursday is the last day for eligibility.
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Postby zayda » Thu 03 Apr 2008 18:32

I think the post right share price will be Dhs 4.11. One thing Iam not able to understand why DIC share prices are low. Taking PE, then DIC should be the most attractive buy. Consistently for the past 4 years it is performing exceedingly well. Can someone throw light.
zayda
profiteer
profiteer
 
Posts: 71
Joined: Tue 19 Feb 2008 23:25

DIC Stock Price

Postby sam111sam » Thu 03 Apr 2008 22:12

Yes, it is true that DIC current price is very attractive, and it has been very profitable consistently, But, it looks that investors do not believe that DIC can maintain this profitability levels in the future (although DIC has outperformed many analyst forecast consistently).
Remeber, DIC get a good part of their profit from the revaluation of the land they leased. Another reason could be the lack clarity in DIC disclosures as we do not get a detailed split of the revenue and profit from each of the company different activities.

Anyway, the local market does not value any stock based on P/E only, in fact the local market does not seem to give a lot of wait for the most of basic fundamentals, otherwise Emaar would not have been trading at Dhs 11 or anything near !!
sam111sam
entrepreneur
entrepreneur
 
Posts: 3728
Joined: Sat 15 Mar 2008 10:54

Re: DIC Stock Price

Postby sharewadi » Sat 05 Apr 2008 07:47

sam111sam wrote:Anyway, the local market does not value any stock based on P/E only,

I hope no one anywhere just uses PE to value stocks :) ...
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

how do we take up the rights?

Postby birdman » Mon 07 Apr 2008 10:16

Excuse my ignorance but I have DIC shares, noticed the drop this week and then realized why. So how do we take up our rights and buy shares at 1 dhs each? I looked at the document on dfm.ae but it is in Arabic so I do not understand :(
birdman
charletan
charletan
 
Posts: 11
Joined: Tue 30 Aug 2005 09:23
Location: dubai or thereabouts

Welcome zayda

Postby sharewadi » Mon 07 Apr 2008 10:59

zayda wrote:Taking PE, then DIC should be the most attractive buy.

Welcome to the DIC-is-cheap stock forums zayda :).

A large proportion of DIC profits come from revaluation of land (and other assets I think). That's usually less attractive than making real cashflow from operations - something DIC have struggled to do in the past couple of years with costs rising more than revenue. I'd say this is way the market places a low valuation on DIC shares.
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Re: how do we take up the rights?

Postby sharewadi » Mon 07 Apr 2008 11:07

birdman wrote:Excuse my ignorance

You're excused :)

birdman wrote:So how do we take up our rights and buy shares at 1 dhs each?

You should receive a document in the post in the next week or two, detailing the number of rights issue shares you're eligible for and the names of the receiving banks. Take the document and a cheque to one of the banks, and eventually the rights issue shares will appear in your account.
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Re: how do we take up the rights?

Postby zayda » Tue 08 Apr 2008 22:12

As per my knowledge FV gains on property are realised the next year. So it is real profits. But anyway, can some one suggest whether to hold on or sell DIC shares.
Also any new information on the value?. Last time EFG Hermes gave a crap report valuing at 3.95, but the share went up the next day. So any new (realistic) report by anyone?.
zayda
profiteer
profiteer
 
Posts: 71
Joined: Tue 19 Feb 2008 23:25

Re: how do we take up the rights?

Postby sharewadi » Wed 09 Apr 2008 08:46

zayda wrote:So it is real profits.

Yes, profit figures are real but it's not the same as cashflow unless DIC sells the revalued property at the higher figure. As anyone who has bought and sold property knows, the actual selling price is not always the same as the valuation, or advertised price.

That's my best guess to explain why DIC shares appear to be so cheap.

I remember the EFG report, it seemed to be on the low side to me too.
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Land Value in Dubai is apreciating very quickly

Postby sam111sam » Wed 09 Apr 2008 11:10

Look at the Arabic calssified ads in Albayan and Ettihad, the price of land in most area's in Dubai has shot up 15% to 20% from Dec till now.

With the huge inflation levels in Dubai, the Dhs is losing value very quickly and only assets can preserve value. DIC is loaded with assests specially land.

Dubai Investment Part (DIP) is becomming a very prime spot because of the new Airport, Metro, and the new Dubai Bypass road. I'm very confidant that the revaluation is real. In fact we should see much more apreciation going to the books in 2008.

However, the big question is
How can DIC generate these levels of profit after they sell everything. It is unlikely that DIC get land again from the Gov for nominal value like DIP deal.
So, how will DIC generate profit in 2009 onwards ?

Remember, Even if you believe that the company is very solid and has a great future, the stock can go down ..... If the others investors do not agree.

You may want to keep the stock till the general meeting, they would usually anoounce thier 2008 plans, which could help the stock price. Otherwise, you may want to switch to other attractive stock like Emaar or Tamweel (Shuaa and ARTC looks vgood too)
sam111sam
entrepreneur
entrepreneur
 
Posts: 3728
Joined: Sat 15 Mar 2008 10:54

Re: Welcome zayda

Postby dessotg » Thu 10 Apr 2008 16:10

sharewadi wrote:A large proportion of DIC profits come from revaluation of land (and other assets I think). That's usually less attractive than making real cashflow from operations - something DIC have struggled to do in the past couple of years with costs rising more than revenue. I'd say this is way the market places a low valuation on DIC shares.

I would disagree that revaluation of properties is large portion of their income (12.67%) , but you're right SW that direct operating costs were > 50% of income. It's related to setting up new ventures and businesses that will pay off in near future. Very strong company, backed by Goverment with very consistent sound results! My personal favourite with BIG potential
dessotg
opportunist
opportunist
 
Posts: 30
Joined: Tue 04 Mar 2008 09:00
Location: Abu Dhabi

DIC properties

Postby sharewadi » Fri 11 Apr 2008 15:36

dessotg wrote:I would disagree that revaluation of properties is large portion of their income (12.67%)

Yes, so I see. There were property sales also, and a few other sources of sort of extraordinary income.

I've updated the DIC 2007 FY profit topic with more comments. And also the DIC 2007 FY report summary.
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

DIC Properties

Postby zayda » Mon 14 Apr 2008 13:23

I agree with dessotg. DI has invested huge money in new ventures and land and properties. If we read DI financials, AED 1.5billion is in inventories, they have purchased land and properties and AED 730m in new acquisitions and purchase of assets which accrue cash in future. And also I think they have not yet fair valued thier land, they have only done for leases in DIP, which means they have undervalued their assets. Also, DIC CEO in some forum have recently mentioned they are going to divest their interests in subsidiaries. So we can expect positive things from DIC in future
zayda
profiteer
profiteer
 
Posts: 71
Joined: Tue 19 Feb 2008 23:25

DIC rights issue subscription

Postby sharewadi » Thu 17 Apr 2008 13:08

There's an advert in the Gulf News first page of business section today with a list of receiving banks - some branches of:

Commercial Bank of Dubai (CBD)
Emirates Bank (EBI)
Emirates Islamic Bank (EIB)
National Bank of Dubai (NBD)

Procedure is to take forms that have been sent to you, or go to one of the Emirates Bank receiving banks with your Dubai Financial Market (DFM) investor number to get a copy of the letter. Subscription period closes 30 April 2008.

Full details of banks and procedures added here...

How to apply for DIC rights issue
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

DIC subscription period extended

Postby sharewadi » Wed 30 Apr 2008 09:07

Dubai Investment Company capital increase / rights issue phase II subscription period has been extended from 30 April 2008 to 08 May 2008...

[source="DFM 30 April 2008"](DIC) Dubai Investments : Extension of the subscription date for its rights issue till 08/05/2008[/source]
Please read forum posting guidelines, especially if you have been deactivated.
User avatar
sharewadi
moderator
 
Posts: 14482
Joined: Fri 19 Aug 2005 11:10
Location: up the wadi without a paddle

Re: DIC subscription period extended

Postby hardbull » Sun 11 May 2008 20:34

Hi ,

Anybody got DIC Right shares. And how many days it will take to get the allotment letter and refund cheque.
hardbull
charletan
charletan
 
Posts: 23
Joined: Tue 15 Apr 2008 23:14

Next

Return to DIC Dubai Investments

Who is online

Users browsing this forum: No registered users and 0 guests