Pages: [1] :: one page |
|
Author |
Thread Statistics | Show CCP posts - 0 post(s) |
Polvek Tybor
Imperial Chemical Industries
|
Posted - 2007.12.31 02:49:00 -
[1]
Hi all
I'm thinking about trying to raise some public debt capital for my new business venture. I'd appreciate any feedback you have to ensure that if I were to go ahead it would stand the best chance of success.
Business Summary
ICHEM currently operates a single medium reactor producing intermediate moon minerals. In my experience so far there is a decent profit margin (currently circa 50%) to be made on certain products.
I am interested in the possibility of raising public debt finance to expand operations into further intermediate reactions or more preferably complex reactions. Ideally I would like to capture the entire value chain from basic minerals through to complex materials to maximise profits. ICHEM does not currently mine any minerals itself and operates its POS at low-sec barren moons. The business model is therefore based on the production of relatively rare moon materials which cannot readily be created in situ with the harvester.
The money raised in the proposed offering will be used in the construction of a new medium POS (approx 350m) and working capital for fuel, stront and raw materials (a further 150m).
As I see it the principal risks facing the business are (a) the pirating of goods in transit; (b) POS destruction; and (c) falls in inventory value.
a. I always use an alt recon when transporting goods. The risk of running into a camp therefore is minimised. Furthermore the loss of a single industrial worth of cargo is unlikely to be too crippling to the business.
b. The POS are well defended with the usual assortment of weaponry (details could always be discussed). However, since the moon locations are barren there would be little value to anyone taking these down. With these being anchored in low-sec and fitted with the usual assortment of defences I would expect the probability of attack to be low.
c. Especially at current market prices there is a risk that a sudden collapse in the rare materials market would cause problems for ICHEM. To minimise this risk we maintain an inventory turnover of approximately 1 week (from purchase to sale). Therefore unless the market drops substantially in less than a week we will not suffer a substantial loss.
Proposed Offering
If this gets sufficiently wide approval I would propose to issue a medium term note (MTN) along the following lines:
Par value (Capital): 500 notes of 1m ISK each. Coupon (Interest): 10% per month (paid at 5% every 2 weeks). Maturity: Redeemable at par at ICHEMs discretion but no later than 6 months from the date of issue. Registration: The notes will be bearer instruments. Interest and capital are repayable to the legal holder (per corp screen) on the coupon / redemption date.
Corporate Reporting
Some of you might point out that a private loan would be a better option for this size of investment. You might be right about that but if this proves sufficiently lucrative I would like to continue to raise further public debt to grow operations further. Therefore I would like to get ICHEM into the public domain sooner rather than later.
From a public reporting perspective I would expect to release accounts (Balance Sheet, Income Statement) on a monthly basis and provide profit forecasts at each coupon date.
Feedback
Anyone got any thoughts on the above? If I were to go ahead would I get any takers for an initial 500m of the notes?
|
Shadarle
|
Posted - 2007.12.31 02:56:00 -
[2]
Do you want to limit how much any one person can hold?
I am quite sure you will get interested people. I really am a bit overloaded with smaller investments already and am getting tired of tracking them all, otherwise I'd invest a little bit in you probably.
Just to be clear. You are paying 5% divs twice a month, correct? Thus 50,000 isk per 1,000,000 invested, every ~15 days?
Tanking Setups Compared
Stacking Penalty / Resists Explained |
Polvek Tybor
Imperial Chemical Industries
|
Posted - 2007.12.31 03:16:00 -
[3]
I don't think it should matter to me how many investors there are - 1 or several. I'd prefer not to have 500 different people though from a point and click cash payment perspective.
On the interest side I was indeed suggesting to pay 5% every 2 weeks. I wasn't sure if that was a suitable amount but since this is a new venture with a new public company it only seems reasonable to pay out a decent return on a regular basis.
The debt is repayable at my discretion (plus accrued interest of course) but no later than 6 months from issue. Although to be honest the repayment option is more for if there is a major problem with the business viability and I need to liquidate. I hope to not redeem the debt and ideally to roll it over after 6 months (maybe at a lower rate!).
Given that POS structures are pretty liquid and any materials can also be easily sold into the market I would expect that I could return substantially all the capital quickly if needed.
|
Shadarle
|
Posted - 2007.12.31 03:21:00 -
[4]
Originally by: Polvek Tybor Given that POS structures are pretty liquid and any materials can also be easily sold into the market I would expect that I could return substantially all the capital quickly if needed.
You'd be surprised... some other POS IPO's have had some issues lately with gankings and the like.
Tanking Setups Compared
Stacking Penalty / Resists Explained |
Polvek Tybor
Imperial Chemical Industries
|
Posted - 2007.12.31 03:28:00 -
[5]
Yeah, I read that thread - bit of a shame that. Still the lesson to be learned is not to offline 7 POS in one go.
Clearly onlining the POS is a major risk. I'd look to put it up straight after DT and with a scout. As a point of interest Polvek isn't actually an active corp employee and is sat in New Caldari right now scratching his arse.
Actual POS construction and operation is with another char.
|
Scipio Divinitus
Minmatar Black Star Corp
|
Posted - 2007.12.31 05:58:00 -
[6]
Edited by: Scipio Divinitus on 31/12/2007 06:02:29 I would like 50 notes please. Who would you like me to send the ISK to? I assume its this character but it does not say explicitly so.
|
Ambo
2nd Outcasters
|
Posted - 2007.12.31 12:33:00 -
[7]
I've had a chat with Polvek and taken the remaining 450.
--------------------------------------
Trader? Investor? Just want to track your finances? Check out EMMA |
Polvek Tybor
Imperial Chemical Industries
|
Posted - 2007.12.31 12:35:00 -
[8]
Hi Scipio
You can send Polvek the ISK please. I can send you the notes (shares) later today.
I'll see about posting some basic financials later today.
Thanks
|
Trilori
Caldari GearBox Fleet Svcs
|
Posted - 2007.12.31 13:32:00 -
[9]
No collateral? No securities? I hope this goes well for the investors.
The IPO could use more work, like what profit margins could one expect to see you get to assure you would be able to pay out 10%
But that doesn't matter, you already sold out your IPO :)
|
Polvek Tybor
Imperial Chemical Industries
|
Posted - 2007.12.31 18:31:00 -
[10]
It turns out that new shares aren't created at DT but 24 hours after the vote commenced. Therefore I'll be sending out the bond notes to investors tomorrow instead.
I'd like to see if I can put out some summary financial information tonight in a new thread but I'm running a bit short of time since it's the new year in a few hours here. If I don't manage it tonight I'll put something out in the next couple of days.
Either way the first coupon payment of 5% is due the Sunday after next.
Have a good New Years party if it's still 2007 where you are!
|
|
SiJira
|
Posted - 2008.01.02 01:12:00 -
[11]
speculating the market based on this ipo Trashed sig, Shark was here |
|
|
|
Pages: [1] :: one page |
First page | Previous page | Next page | Last page |