César Iglesias, First IPO of the Dominican Republic

[NALs]

César Iglesias, the largest manufacturer in San Pedro de Macorís and founded by natives of San Pedro de Macorís, will become the first IPO of the Dominican Republic in the Dominican Stock Exchange. This means for the first time in history, everyday Dominicans have a chance to buy stocks from this company. Chances are the value of these stocks will increase through the years, making this an interesting investment even for expats. You don't have to be rich to buy stocks!

This is also exciting because this is a Dominican manufacturing company based on primarily Dominican consumption, not exports. This is all DR from beginning to end. Mostly Dominican founders, managers, employees, products for Dominican consumption, etc.

 

[NALs]

All videos are in Spanish.

The Company

The Market

The Numbers

 

[NALs]

Some of the findings in the video are,,,

- Colmados are not where 70% of consumption takes place, it's down to about 40%. This is expected as the economic growth effects reaches all levels of society with a drop in poverty levels.

- Before the security crisis in Haiti, 40% of everything consumed there was made in Dominican factories. After the start of the security crisis, now is well over 50%. Basically, thanks to "Barbecue et al" now Haitians on the entire island are mostly depending on the Dominican upper class and business owners for their survival. Despite the increase, most consumption is done in the DR. Despite culturally Haiti is very different from the DR,
economically now is like a Dominican barrio given its dependence on Dominicans but even with the increase their effects are still relatively small of all the products made in the DR.

- César Iglesias was ranked by Fitch with a AA rating, very good.

- The estimated value of its stocks to be emitted during the IPO is around US$266 million or US$2.94 per share.

- César Iglesias is valued at US$413 million.

 

[NALs]

Further info is presented in a new Dominican podcast about the economy and business: Números Verdes.

Some of the info:

- The interview by Econ. Manuel Vilchez and Gladine Rapozo are of Paola Subero (Projects and Structuring Manager in PARVAL) and José Gior Ariza (Ariza, Ariza & Asociados and Investa Capital Partners), in his case he is one of the person's responsible for preparing the transition of César Iglesias from a family business (the case of 99.9% of big and small businesses in the DR) to a more public one.

- César Iglesias is putting in the Dominican stock market 30% of its shares(over 38 million). The rest will stay with the founding family and original investors before it went public.

- The price of the stock during the IPO is the same for all and will remain until all stocks are sold. Then starts the secondary market when owners of stocks can sell them and that price is dictated by the market. Usually, the price of a stock in IPO tends to be low which leads to very good revaluation once the market is in charge, most times.

- There is a limit of buying a maximum of RD$5 million stocks during the IPO. This ensures the really high net worth individuals and companies don't buy all the stocks during the IPO, severely restricting the little guy. A percentage of the new stocks will also be available only to small investors (say someone that rather than buying millions of shares, buy 50 or more or less.

- Anyone can buy a stock of César Iglesias as long they have an account in any of the Dominican investment companies. All the major banks have an affiliate investing company, but others are not affiliated with commercial banks. Depending on the investment company, some have a small initial cost to open an account while others (the one mention in the video is PARVAL, lol) don't have any costs or investment compromises when you open an account. All these companies (puesto de bolsa) are in Santo Domingo and many have additional offices in the interior. Many expats have accounts with Banco Santa Cruz, the too have an investment company. Ask about it at the nearest Banco Santa Cruz.

 

[johne]

Nals, are there enough disclosure statements here to protect the investor (as there would be in countries that have have been selling stock to the public for ever and ever) or are the laws for full disclosure substantially different here in the DR? I'm a little queasy about some of the statements in this thread.Just asking.

 

[NALs]

Nals, are there enough disclosure statements here to protect the investor (as there would be in countries that have have been selling stock to the public for ever and ever) or are the laws for full disclosure substantially different here in the DR? I'm a little queasy about some of the statements in this thread.Just asking.

All of that is covered by the investment companies. Open an account with any of them and they will disclose it.

This is how an account in PARVAL can be open (even through the app), but generally those are the stepa to open an account in most Xominican investment companies. A cédula isn't necessary as a passport is accepted as well.

It should also be noted that the DR Stock Exchange now is one of the most modern in the world due to adopting certain technologies in recent years and has received the attention of other highly serious stock exchanges, such as the one from Chile which went as far as investing into the DR Stock Exchange, not just look at things.

 

[Big]

Interesting. You can scour the entire Wall Street investment houses. I doubt you will find one adviser to advocate this investment.

 

[johne]

Nal...with all due respect, I question whether or not you on DR1 has the standing to promote this stock without disclosing your position. I don't mean that in a bad way but I see issues that maybe are just not kosher. For example (I'm not going any further than this bc my investments are managed ) you state (something) is rated AA by Fitch. It's not clear to me what is rated BUT one could be lead to believe the stock is. And I'm sure that's not the case.

 

[johne]

All of that is covered by the investment companies. Open an account with any of them and they will disclose it.

This is how an account in PARVAL can be open (even through the app), but generally those are the stepa to open an account in most Xominican investment companies. A cédula isn't necessary as a passport is accepted as well.

I feel this is a form of promotion and I "think" one must be licensed to do that. Whatever, count me out.

 

[JD Jones]

Whatever happened to CEVALDOM and unitedcapitaldr.com?

 

[johne]

Whatever happened to CEVALDOM and unitedcapitaldr.com?

Who...what...when...?

 

[NALs]

I feel this is a form of promotion and I "think" one must be licensed to do that. Whatever, count me out.

Don't go by emotions. This thread will also serve as a place to posts the changes in price of the César Iglesias stock from the IPO to a short tine after it begins to reflect market values. With that, anyone can calculate how much money they made (if got in during the IPO) or would had made given X amount of stocks.

 

[johne]

Don't go by emotions. This thread will also serve as a place to posts the changes in price of the César Iglesias stock from the IPO to a short tine after it begins to reflect market values. With that, anyone can calculate how much money they made (if got in during the IPO) or would had made given X amount of stocks.

Total BS. Are you receiving ANY form of renumerartion for your effort here on DR1 to promote clients?

 

[johne]

Further info is presented in a new Dominican podcast about the economy and business: Números Verdes.

Some of the info:

- The interview by Econ. Manuel Vilchez and Gladine Rapozo are of Paola Subero (Projects and Structuring Manager in PARVAL) and José Gior Ariza (Ariza, Ariza & Asociados and Investa Capital Partners), in his case he is one of the person's responsible for preparing the transition of César Iglesias from a family business (the case of 99.9% of big and small businesses in the DR) to a more public one.

- César Iglesias is putting in the Dominican stock market 30% of its shares(over 38 million). The rest will stay with the founding family and original investors before it went public.

- The price of the stock during the IPO is the same for all and will remain until all stocks are sold. Then starts the secondary market when owners of stocks can sell them and that price is dictated by the market. Usually, the price of a stock in IPO tends to be low which leads to very good revaluation once the market is in charge, most times.

- There is a limit of buying a maximum of RD$5 million stocks during the IPO. This ensures the really high net worth individuals and companies don't buy all the stocks during the IPO, severely restricting the little guy. A percentage of the new stocks will also be available only to small investors (say someone that rather than buying millions of shares, buy 50 or more or less.

- Anyone can buy a stock of César Iglesias as long they have an account in any of the Dominican investment companies. All the major banks have an affiliate investing company, but others are not affiliated with commercial banks. Depending on the investment company, some have a small initial cost to open an account while others (the one mention in the video is PARVAL, lol) don't have any costs or investment compromises when you open an account. All these companies (puesto de bolsa) are in Santo Domingo and many have additional offices in the interior. Many expats have accounts with Banco Santa Cruz, the too have an investment company. Ask about it at the nearest Banco Santa Cruz.

Resonable people would include the following:

 

[El Hijo de Manolo]

I smell ponzi in the near future

 

[JD Jones]

Do you think BHD Leon is running a scam?

 

[El Hijo de Manolo]

Do you think BHD Leon is running a scam?

Well, certainly no one thought Enron or Arthur Andersen would either. I don't think so, to answer your question; but tbh you need to wake up.

Anything can happen when you open up companies to the public. Also the bank is an intermediary.

 

[johne]

Do you think BHD Leon is running a scam?

No. The reason for my inqueries are directed to Nals. There are a dozen reasons one can be "mislead" by the content he posted. Now, in his defense, he suggested you call the brokerage house. No way do I have room in my life to be caught in the spiral of commissioned sales people...especially in the DR.
What I also find "interesting" about this thread is that it is advertising (I assume for free) on a site, thats us, which is from what I recall to be against the TOS. Correct me if I am wrong or if mods have that as a privilege.
I am super sensistive to how stocks are bought and sold. The issue of class A vs. class B. etc, and who owns these shares and, and,and, can be very misleading to say the least.
One last thing I will say...I DO NOT know the rules of the exchange in the DR, but when one says "DR1 will act as a site to count your earnings " (or something like that.)..one MUST publish on that page in disclosures, "FORWARD THINKING EXPRESSIONS USED HERE".

I have no horse in this race other than developing the art of reading comprehension for old people.

 

[AlterEgo]

DR1 has nothing to do with this offering. Purely informative.

 

[slowmo]

Don't go by emotions. This thread will also serve as a place to posts the changes in price of the César Iglesias stock from the IPO to a short tine after it begins to reflect market values. With that, anyone can calculate how much money they made (if got in during the IPO) or would had made given X amount of stocks.

Sounds like a sure thing.