Hargreaves Lansdown flotation

Rhino666

This has turned into a very interesting thread and I am proud to have started it.

Most people seem to be of the same opinion as me - HL is a good company and worthy of personal investment but not at this time and not at the price range stipulated.

I assume that messrs H & L will not be realising their money because of capital gains tax, unless they have reached an agreement with the taxman or there is some sort of advantageous taper relief after more than 15 years of company ownership. I would think it far more likely that they will be investing the money elsewhere - now that is a cake I would definitely like a slice off :-)

Best of luck to those who decided to invest.

Midnight_Cowboy_2

Here's another feature, this time from the FT:

http://ftalphaville.ft.com/blog/2007/05/01/4222/hargreaves-lansdown-aims-high-on-ipo/

It says that the company was valued at £600m in January! I do think, as rhino said, that this is a quality business; but not at any price.

Midnight_Cowboy_2

Well, I've been posting a lot on this offer, both here and on other sites. On the basis of all the evidence I've seen, I'm going to give it a miss. Why? Well, the company itself is good; no question. Good profits, good eps, good growth. But the price is well over the odds. Valuing the company at £711m when it was valued at £600m 4 months ago is a tad optimistic in my eyes, and the PE ratio backs that up. Also, only knowing the price to within 10% or so (becaue we can only guess where it will be pitched in the offer range) makes it a bit hit and miss. I'd rather wait until I can see an exact price in open trading, and maybe if it dips to the bottom end of the offer prices I might have a punt then.

Just my own opinion, mind; do your own research, as always!

iantheman

Hi,

I too have enjoyed following the thread and have the same personal opinion. Good company with good prospects, but without a potnetially discounted offer for existing clients, we would be investing with no special deal and therefore no more chance of a relatively quick gain - unless the shares are in short supply when trading starts and institutions want more.

I will give it a miss but watch the share price with interest and hope I don't regret passing up the opportunity.

Thanks to all, so far.

questor_2

Hi all,

I have decided NOT to invest at all in HL in this offer. So with only an hour and half to go, I tried to get the money that I put in back to my own Bank Account. I found that while putting the money in was absurdly easy, getting it back is far more difficult. H-L have just informed me that they need signed authority, ie a written letter with full details in order to return my money to me.

Midnight Cowboy: Thank you for that FT link. Using that info, the adjusted price comes to about 120p/share, thus:

(600M/750M) x 150 p/share = 120 p/share.

Furthermore, the BoE interest rate in 1 January was 5% (raised to 5.25% on 11 Jan). Now it's 5.5% possibly going even higher. That makes a possible drop in share prices more likely.

Rhino666, Thank you for starting this thread. A most useful one.

Everyone who invested in H-L: Good Luck. Despite my reservations, I do think you will get your money back and more, in time.

But then any investment in the stock market should be for the medium term at least, preferably for the long term.

And in the long term, I believe H-L to be a very good company.

Questor.

olivert

Firstly Well Done Rhino 666,if There Are Anymore Ipos,new Issues,we Must Do This Again.secondly In The End I Subscribed To The Hl Issue,its Looking Good So Far Dealers Report It Was Heavily Oversubscribed,we Must Now Wait For Tuesday And The Allocation Basis And Opening Market Price.cheers

mutley74

olivert wrote: »

Firstly Well Done Rhino 666,if There Are Anymore Ipos,new Issues,we Must Do This Again.secondly In The End I Subscribed To The Hl Issue,its Looking Good So Far Dealers Report It Was Heavily Oversubscribed,we Must Now Wait For Tuesday And The Allocation Basis And Opening Market Price.cheers

Olivert,
where did you hear it was oversubscribed???

I started getting IC and theres loads of new IPOs coming to teh market also many recommended AIMs. I have decided to start investing in AIM only thing is that is outside my ISA.

SilverScooby

I took the plunge yesterday - looks like price will be 160p, and allocations will be scaled back as it's reported oversubcribed here:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article1779886.ece

Shares in Hargreaves Lansdown will be priced at the top of their range when the stockbroker begins conditional trading next Tuesday, netting its two founders £150 million between them.

Sources said that the stock was likely to be valued at 160p, the upper limit of the 140p-160p range set when the float was announced last month, after becoming many times oversubscribed.

Hargreaves Lansdown, set up by Stephen Lansdown and Peter Hargreaves in Mr Hargreaves’s spare room in 1981, will be valued at £759 million at the 160p-per-share pricing, putting it straight into the FTSE 250.

Presumably FTSE 250 Tracker funds will need to buy in the open market, which I guess will help the price!

ajmace

....and they are now trading 31% above the issue price at 210p. That's a very welcome instant £700 profit for anyone allocated the minimum 1400 shares on a £5k investment. (and much better than H-L's normal paltry 'loyalty bonus').

Not bad for a few minutes work. Pity that Midnight Cowboy and others put so many of you off buying them. I did try to offer an alternative view - at least I took my own advice.

Cheers
:beer:

olivert

Great News I Applied For Gbp20000 Worth And I Was Allotted 5000 Shares At 1.60,now Trading At 2.10 With Dealers Reporting Heavy Institutional Buying .the Gbp2,500 Profit I Made Will Pay For The Family Holiday In Turkey