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.
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 . _________________ UAE IPO list | posting guidelines
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.
DIC 19 March 2008:
In view of the proposed right issue (second phase) of shares at par on 16th April 2008 ...
DIC audited consolidated financial statements for the year 2007:
Who wrote this:
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?!!!
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.
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. _________________ UAE IPO list | posting guidelines
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.
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 !!!
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
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. _________________ UAE IPO list | posting guidelines
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. _________________ UAE IPO list | posting guidelines
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?.
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. _________________ UAE IPO list | posting guidelines
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)
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
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
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...
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