Equiniti Share Discussion Threads

[stuart_01204] 29/1/2016 12:27

Forgive my ignorance but is someone able to explain why 3 trades are showing for 140,357 at 15:54?

[chadders] 20/1/2016 15:30

S.G. I've been in this from the outset. I seem to remember they have a plan of using 30% of profits to fund the dividend. Maiden results will be very interesting methinks.

[simon gordon] 20/1/2016 13:23

Telegraph - 20/1/16:

There are three other shares I have recently bought. One is Equiniti, the share registration business. I bought because the shares were cheap, on a price to earnings ratio (p/e) of 11. I like the fact that the business has long contracts on the various pension schemes it administers.



No broker forecasts on Sharescope, first time I've seen the rating mentioned. Looks a good multi year buy and hold.

[someuwin] 07/12/2015 10:03

Barclays Capital initiates coverage with OVERWEIGHT and 230p target.

Liberum Capital initiates coverage with BUY and 250p target

[shawzie] 23/11/2015 14:07

Extract from a notice in the Times newspaper.
" - - - - a Claim Form was issued on 6 November 2015 in Her Majesty's High Court of Justice claiming confirmation of the cancellation of the Share Premium account of Equiniti Group - - - - "
From 2014 Accounts it appears that the Share Premium account sits at £3.5M.
Not being an accountant, can anyone explain where the £3.5M will go?

[vacendak] 16/11/2015 09:04

@ A0148009

I think it is more a case of image than pure numbers. The customer base, for the registrar activity, is solid (70 companies in the FTSE 100) and I guess it is hard to make terrible mistakes and lose contracts in that type of business. Strong history of handling payments for the Army, Civil Service, and similar clients. On the supply of "complex administrative" services (see the post from Rivaldo) they might have to fight Capita, but I am sure more competition would be welcome so as to limit the market dominance (and cosiness with Whitehall) of the latter. There are also rumours about privatising the DVLA, or at least outsourcing some of their work; Equiniti is poised to have a go at that too.

All in all maybe not a very exiting stock, boring business and all, not much growth beyond organic, but very likely resilient and providing a decent dividend.

As for forecast, it should go safely up to 200p within a month or two, this was the upper bound of the IPO price range, in other words reaching its original estimate. Still, I still cannot fathom why it fell by 8% dip in the first week after the IPO then rallied like that.

[rivaldo] 13/11/2015 15:11

As part of the Indian PM Modi's visit to the UK, EQN have announced Indian expansion:



"21.The offshore arm of the UK’s Equiniti Group, Equiniti India announces their expansion plan in Chennai that will create 500 new jobs by end of 2017. The Equiniti group is a provider of technology and solutions for complex and regulated administration. This development will boost Chennai’s IT skilled job market by creating jobs in IT development, testing and BPO"

[a0148009] 12/11/2015 12:51

On the basis of all the above comments there does not seem to be compelling information to buy - we are all scratching our heads wondering why the institutions are buying!

AO

[seagullsslimjim] 12/11/2015 10:18

onwards and upwards towards the 180's !!!

[rivaldo] 12/11/2015 09:42

Good to see Newton Investment Management buying more and crossing above 5% with 15m shares:

[seagullsslimjim] 11/11/2015 16:01

4pm and as regular as clockwork - 175.50p mid price

[rivaldo] 11/11/2015 08:17

Buying coming in at 174.51p now.

[seagullsslimjim] 10/11/2015 21:28

looking good for tomorrow and I can see a rise to 180p before a pause of breath!

[shawzie] 10/11/2015 14:36

Thanks for your take on situation ramridge.
Also, was there not a Pension Scheme Liability of £15.5M at end of 2014?
If there is a bright side in the 2014 Accounts, I suppose the Loss before Tax of £38.7M is a substantial improvement on the Loss of £61.7M incurred in 2013.
I assume that the Net Finance Costs of £71.8M shown in the 2014 Accounts will be reduced in 2015, so perhaps there is light on the horizon.

[rivaldo] 10/11/2015 13:53

It certainly does show that Advent are happy to spend a great deal more money topping up their holding at the 165p IPO price. This is most unusual for private equity.

It's straightforward in that the extent of Advent's increased holding will be dependent on the Over-allotment option.

[ramridge] 10/11/2015 12:04

rivaldo -
Not exactly straightforward, is it. It depends if the over-allotment option has been exercised or not. If yes, then Advent's holding remains at 25.6%, if not then it increases to 32%.
No RNS has been issued on this subject, no doubt one will be issued in the next few days/ weeks.
So we don't know yet.
BTW, this is not showing Advent's appetite to get more shares. It is simply a market stabilising routine that applies to most IPOs

[vacendak] 10/11/2015 11:33

mbthedude,

Odd that you got nothing. I got everything I applied for through my Equiniti Shareview investment account.

In the "pricing and allocation" note I got after the IPO, it says:

"Those who applied for more than £10,000 will be allocated £10,000 plus 55% of the excess amount, rounded down to the nearest whole Share.

So, for example, for an application of £17,500 the applicant will receive £10,000 + (£17,500 - £10,000)* 55% = £14,125 = 8,560.61 Shares = 8,560 Shares rounded down to the nearest whole Share."

Then again I paid 165p (no fees though) for these and you got yours at 156p. :)

[mbthedude] 10/11/2015 11:21

rivaldo,

In reading of this post

ramridge 9 Nov'15 - 18:37 - 26 of 32 0 1

Hi shawzie -
OK. Had a good look at the IPO doc and still don't like what I see. Here is why.

- the IPO doc has a pro forma balance sheet statement but no pro forma income or cash flow statement.
All in all I just don't like it. It is just typical of private equity stuffing the company with debt and exiting to leave the PI s holding the baby. In my view , at best, this co. will break even at year end 2015 and saddled with heavy debt

Not for me. All in IMO and please DYOR.

I knew the IPO had already taken place so was wondering why somebody would still be referring to the IPO documents now the shares are already trading. Perhaps just misinterpretting his post

As a Selftrade client I got an invitation to buy in the IPO but was never allocated any shares. I then bought after at 156p so it worked out better for me anyway

[rivaldo] 10/11/2015 10:41

The IPO RNS is straightforward:



"In addition, as previously announced, Advent International, a private equity investor currently controlling the Group, has agreed in a separate subscription agreement, to subscribe for New Ordinary Shares at the Offer Price in an amount of £75 million"

"Following Admission:

- The Advent Shareholder will hold 32.0% of Ordinary Shares (assuming no exercise of the Over-allotment Option) and 25.6% of Ordinary Shares (assuming the Over-allotment Option is exercised in full)"

[ramridge] 10/11/2015 10:07

rivaldo - my reading of the RNS is that Advent's share holding remains at 25%. What has changed is a stock lending agreement which gives then in total 32% of the voting rights if exercised.

Here is an amusing snippet from the same RNS:
"
Equiniti (Luxembourg) S.à r.l. is a direct subsidiary of Equiniti Group (Luxembourg) S.à r.l., which is a direct subsidiary of Equiniti (Cayman) Limited, which is a direct subsidiary of Equiniti (Cayman) Holdings Limited, which is a direct subsidiary of Knight (Cayman) Limited, which is a direct subsidiary of Chequer Cayman Limited Partnership. Chequer Cayman Limited Partnership is controlled by certain limited partnerships of which GPE V GP Limited Partnership is the general partner and the fund manager is Advent International Corporation
"

[rivaldo] 10/11/2015 09:33

The IPO date was 30th October mbthedude. I've no idea what you're referring to!

Incidentally, IPO documents always contain pro forma Balance Sheets and never usually a P&L or cash flow. The idea of the pro forma is to show the effect on the B/S of the IPO proceeds or any other IPO adjustments - these usually affect only the B/S, which explains why only the B/S is shown.

It's particularly interesting that in EQN's case, Advent - the main private equity holders - have actually increased their holding to 32%, subscribing for another £75m of shares at 165p.

[sphere25] 10/11/2015 09:24

Hell of alot of demand for stock here.

Book was strong yesterday and the little dip this morning got gobbled up very quickly.

Book is looking strong again today.

Sphere - trading long

[mbthedude] 10/11/2015 09:20

I thought the IPO already took place in October if this is a second one what is it actually for?

[seagullsslimjim] 10/11/2015 07:35

With Citadel holding 5.8% and yesterdays late PM announcement that Newton Asset Management have picked up 5.01% should help see further appreciation in the share price this week.

Will be interesting to see if any other holding RNS's pop up

Also the recent Director purchase of over £250k would indicate to me that there is value here !