Bravo Wescoal – but three going bust, most losing money: 2005 poor new listing vintage
By Alec Hogg
We all like to be on the inside track. Should they be offered, most will pile into shares of any soon-to-be-listed company. Buying blind is never a good thing. In 2005, though, it would have been an especially bad idea. Of the 11 new listing that year, only Wescoal celebrates its first decade as a public company in any style. Wescoal shares have risen from their pre-listing offer of 50c to a fraction over 200c today, a return of 300% over the 10 years.
That's where the Class of 2005's good news ends. Two of the others, Oasis Property Fund and Amalgamated Electronics, trade above their pre-listing price – although neither beat the interest paid by a savings account. The nine other debutants of 2005 all lost their supporters money. Three of them have been liquidated so the shares are now worthless; two others trade at less than a tenth of their pre-listing price; the balance have fallen in value between 70% and 85%. Clearly, investors would have been best advised to ignore the entire JSE New Listing Class of 2005.
UPDATE: Note from an independent property investment specialist puts Oasis's performance into perspective: "Don't forget Oasis Property Fund would have carried a yield of (I guess) in excess of 10% pa through the period. As with all REITs – like property, the yield has made up over half the total return for the last 35 odd years. So its given a rather attractive real return over this period." Good point. So Oasis means two of the 11 did well. Still not great odds.
The JSE's Class of 2005: Click on the Listing Date to read the pre-listing statement.
Company name | Code | Listing date | Issue price | Price Dec 2014 | Growth % |
Wescoal Holdings Ltd. | WSL | 20-Jul-05 | 50 | 201 | 302% |
Oasis Crescent Property | OAS | 23-Nov-05 | 1000 | 1700 | 70% |
Amalgamated Electronic | AER | 29-Aug-05 | 190 | 270 | 42% |
Verimark Holdings Ltd. | VMK | 11-Jul-05 | 250 | 65 | -74% |
Wesizwe Platinum Ltd. | WEZ | 21-Dec-05 | 400 | 84 | -79% |
Oando Plc | OAO | 25-Nov-05 | 510 | 92 | -82% |
Chrometco Ltd. | CMO | 12-Aug-05 | 125 | 9 | -93% |
Tawana Resources NL | TAW | 14-Nov-05 | 368 | 19 | -95% |
Alliance Mining Corp | AMM | 31-Mar-05 | 100 | 0 | -100% |
BioScience Brands Ltd. | BIO | 22-Sep-05 | 50 | 0 | -100% |
Miranda Mineral Hold | MMH | 19-Dec-05 | 31 | 0 | -100% |
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