The Lemon Fool

ReallyVeryFoolish wrote:HUT Group? Known for on line retail, but the real value of this business seems to be in it's logistics platform that already has heavy hitters amongst it's client companies. A very rare technology driven opportunity, I see not entirely dissimilar to Ocado. Even better, they are a North West England based company and are creating many much needed jobs in a hard hit post industrial region. I will be buying a small stake, I think.

https://news.sky.com/story/4-5bn-float- ... l-12056992

RVF

Reading the offer document via their website, Investors section, its not clear how much the existing shareholders are selling, and how much is new money raise. Any ideas?

Also reported here

https://www.theguardian.com/business/20 ... -flotation

https://www.investegate.co.uk/hut-group ... 00072734X/

This is the RNS. It makes a change to see a good news story in UK retail.

I hold Hut Group through the Merian Chysalis Investment Trust which I bought to get exposure to unquoted companies. I’m hoping they will run with the investment a while longer.

Regards,

RD

ReallyVeryFoolish wrote:

dealtn wrote:

ReallyVeryFoolish wrote:HUT Group? Known for on line retail, but the real value of this business seems to be in it's logistics platform that already has heavy hitters amongst it's client companies. A very rare technology driven opportunity, I see not entirely dissimilar to Ocado. Even better, they are a North West England based company and are creating many much needed jobs in a hard hit post industrial region. I will be buying a small stake, I think.

https://news.sky.com/story/4-5bn-float- ... l-12056992

RVF

Reading the offer document via their website, Investors section, its not clear how much the existing shareholders are selling, and how much is new money raise. Any ideas?

Lots of information in the rather long RNS linked in another post here.

RVF

That's just an abbreviated version of the offer document on the website. All it says with respect to the current owners is "offer of existing Shares to be sold by certain existing shareholders."

So I am none the wiser who is selling, in what size, and what tie-ins, if any, apply to their remaining holdings.

It is rare I participate in primary listings now, as in practice the sellers know more about the business than the (new) buyers, and they often have a motive behind the reason they are selling. Far too may IPOs are now duds, so I want to make sure I am aligned with the sellers if possible.

ReallyVeryFoolish wrote:It's a local business, I perhaps have more of an interest than most folks, I guess. It's extremely rare to have a successful business of any type in the area, especially one just built a brand new business campus that can support up to 10,000 jobs. I will happily out a small amount of money into the business. I cannot remember the last time the Cheshire/Manchester economy had such good news.

RVF

You have a Northern Powerhut!

Thanks for the heads-up. I may take a look, though I think actually investing is an outside chance.

Some serious commentators unimpressed: https://www.thisismoney.co.uk/money/mar ... sting.html

UncleEbenezer wrote:Some serious commentators unimpressed: https://www.thisismoney.co.uk/money/mar ... sting.html

Yes, there are plenty of negatives, but even setting those to one side, the free float of only 20% completely kills it for me. I never invest in companies with such a small free float under any circumstances. It will limit liquidity and mean a wide bid-offer spread for such a large market cap company. IMHO there should be a minimum free float for any IPO on the LSE and it should be much higher than 20%! A 20% equity issue tells me someone simply wants to enrich themselves without giving anything in the way of power to third party shareholders.

All the best, Si

Oops

https://www.theguardian.com/technology/ ... -uncovered

The Hut Group soared on opening from 600p to 650p, on its debut this week, but now is down to 575p. Does anyone think now buying opportunity (tech company potential) or are there red flags?

Adamski wrote:The Hut Group soared on opening from 600p to 650p, on its debut this week, but now is down to 575p. Does anyone think now buying opportunity (tech company potential) or are there red flags?

Corporate Governance would be the big concern for me. That's enough in itself to take it off even my "review list" of potential investments.

285p is the current shareprice. I think the Lemons "called" this correct.

I didn't even consider buying for the same reason as dealtn. I just do not trust these one man bands.

Dod

dealtn wrote:

ReallyVeryFoolish wrote:

dealtn wrote:
Reading the offer document via their website, Investors section, its not clear how much the existing shareholders are selling, and how much is new money raise. Any ideas?

Lots of information in the rather long RNS linked in another post here.

RVF

That's just an abbreviated version of the offer document on the website. All it says with respect to the current owners is "offer of existing Shares to be sold by certain existing shareholders."

So I am none the wiser who is selling, in what size, and what tie-ins, if any, apply to their remaining holdings.

It is rare I participate in primary listings now, as in practice the sellers know more about the business than the (new) buyers, and they often have a motive behind the reason they are selling. Far too may IPOs are now duds, so I want to make sure I am aligned with the sellers if possible.

I was just doing some research, and re-reading some old threads and posts. This really turned out quite ugly as an IPO didn't it?

dealtn wrote:

dealtn wrote:

ReallyVeryFoolish wrote:Lots of information in the rather long RNS linked in another post here.

RVF

That's just an abbreviated version of the offer document on the website. All it says with respect to the current owners is "offer of existing Shares to be sold by certain existing shareholders."

So I am none the wiser who is selling, in what size, and what tie-ins, if any, apply to their remaining holdings.

It is rare I participate in primary listings now, as in practice the sellers know more about the business than the (new) buyers, and they often have a motive behind the reason they are selling. Far too may IPOs are now duds, so I want to make sure I am aligned with the sellers if possible.

I was just doing some research, and re-reading some old threads and posts. This really turned out quite ugly as an IPO didn't it?

That may have been thrown out there as a general comment but, if directed at RVF, will not receive a reply as their LF account no longer exists (all posts removed, but quotes in the posts of others remain).

CryptoPlankton wrote:That may have been thrown out there as a general comment but, if directed at RVF, will not receive a reply as their LF account no longer exists (all posts removed, but quotes in the posts of others remain).

No, it was just general.