Global Ports Holdings - New IPO

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I tripped over this upcoming Float on the Main List recently and wanted to have a look in more detail. Global Ports Holdings is a business which operates Ports for Cruise Liners, Ferries and Yachts across 14 Ports in 8 Countries and you can find their website here:

http://www.globalports.com.tr/index.php

This chunk of text from their ‘About Us’ dropdown menu gives a good summary of what they do:

“Global Ports Holding is the world’s largest cruise port operator with an established presence in the Mediterranean, Atlantic and Asia-Pacific regions, including extensive commercial port operations in Turkey and Montenegro.

Global Ports Holding (GPH) was established in 2004 as an international port operator with a diversified portfolio of cruise and commercial ports. As an independent cruise port operator, the group holds a unique position in the cruise port landscape, positioning itself as the world’s leading cruise port brand, with an integrated platform of cruise ports serving cruise liners, ferries, yachts and mega-yachts. As the world’s sole cruise ports consolidator, GPH operates 14 ports in 8 countries and continues to grow steadily. GPH provides services for over 7.5 million passengers reaching a market share of 25% in the Mediterranean annually. The group also offers commercial port operations which specialize in container, bulk and general cargo handling.”

IPO Details
Can be found at this link:

http://www.globalports.com.tr/ipo.php

A key factor is that if we wish to take up the Offer via an Intermediary, then we have until 5pm on Thursday 11th May 2017 to do it, and Shares will be Priced and start ‘Conditional Dealings’ on Friday 12th May 2017. The Minimum Application Retail Investors can make is £1000.

Unconditional Dealings (i.e. normal trading) will start on Wednesday 17th May 2017 and Online Share Accounts will be credited with the Shares on that day.

Here is the list of Intermediaries:

• AJ Bell Securities Limited
• Albert E Sharp LLP
• Alliance Trust Savings Limited
• Barclays Bank PLC
• Beaufort Securities Limited
• Canaccord Genuity Wealth Limited
• Charles Stanley & Co Limited
• Cornhill Capital Limited
• Equiniti Financial Services Limited
• Hargreave Hale Limited
• Hargreaves Lansdown Asset Management Limited
• iDealing.com Limited
• IG Markets Limited
• Interactive Investor Trading Limited
• Jarvis Investment Management Limited
• Killik & Co LLP
• Redmayne-Bentley LLP
• SVS Securities PLC
• TD Direct Investing (Europe) Limited
• The Share Centre Limited
• WH Ireland Limited.

The above information is in the following Document:

http://www.globalportsholding.com/pdf/Price-Range-and-Offer-Launch-Press-Release.pdf

Market Capitalisation
Here is a key piece of text which outlines the Pricing Range and the corresponding Market Capitalisation:

“Expected price range for the Offering has been set at between 735 pence to 875 pence per Share. This will result in a market capitalisation range at admission of US$598 million to US$697 million (£462 million to £539 million).”

This is critical because I want to try and understand how the Valuation stacks up.

I found this text about Dividends in the Prospectus:

“Holders of the Shares will be entitled to receive any dividends
payable on the Company’s shares for the year ending 31 December
2017 and any dividends payable in subsequent years. The Board of
the Company expects to pay a minimum dividend of US$25 million
for the 2017 financial year, and will decide the total dividend for the
year ending 31 December 2017 at the end of the financial year. The
split of dividend between interim and final will be approximately
50/50, and the Board of the Company intends to pay an interim
dividend in September 2017.”

You can read the Prospectus here:

http://www.globalportsholding.com/pdf/Global_Ports-Holding-Prospectus.pdf

This means that on the Higher Market Cap figure of $697m, the Dividend Yield for the Year Ending 31 December 2017 would be 3.58% ($25m divided by $697m multiplied by 100%) and at the Lower Market Cap figure of $598m it would be 4.1% - that’s actually not too bad.

Conclusion
I am going to cut this short. I have had a look at the Profit & Loss Account from 2016 and it is not particularly impressive. There are some Administration Expenses that have gone up a lot and a lot of ‘funny’ stuff in there that puts me off. The Dividend is clearly attractive but I am unsure how representative this is for future payouts - for now I will not be investing.

There are many aspects I like such as the Cruise Line Sector which is steadily growing with aging populations around the World and this will be a Stock I will stay interested in but for now I will keep away. This is partly because I only have a small bit of Cash available in my iDealing ISA and I would rather use it to top-up on a Stock I already hold - which I might be doing very soon.

Cheers, WD.