Author Topic: AVN -- Avanceon Limited  (Read 87529 times)

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Online MZ

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AVN -- Avanceon Limited
« Reply #-1 on: November 20, 2013, 11:18:20 AM »
All about Avanceon Limited.
« Last Edit: February 23, 2014, 03:31:46 PM by M&M »

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AVN -- Avanceon Limited
« Reply #-1 on: November 20, 2013, 11:18:20 AM »

Offline SBM

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Re: AVN -- Avanceon Limited
« on: November 20, 2013, 11:19:36 AM »
ipo dates announce hogae kiya ?
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Re: AVN -- Avanceon Limited
« Reply #1 on: November 20, 2013, 11:19:59 AM »
Another IPO in the pipeline at KSE

Today, we are presenting an informative piece on one of the upcoming IPOs at the Pakistan capital market.

3rd IPO of the year - Avanceon Limited
Avanceon Limited (AVN) intends to issue 25.17mn shares i.e. 25% of post IPO paid up capital through listing of its shares on the Karachi and Lahore Stock Exchanges. In this regard, AVN is seeking interest from select group of institutional and high net worth investors to participate in the book-building process, which will be followed by a general public offering (IPO). Floor price for the transaction has been set at PKR 14/share and formal book-building will be conducted on 27-28 November, 2013.

About the company
The company is a leading provider of automation, control systems integration, proprietary energy management solutions and support services. It is among the select group of ‘certified members’ of Control System Integrators Association (‘CSIA’) and is also listed on the Control Engineering Magazine's System Integrator Hall of Fame.

Currently, AVN has offices in Dubai, UAE (covering Middle East) by their 100% owned subsidiary Avanceon Free Zone Establishment UAE (AFZE), Lahore, Pakistan (covering South East Asia) and Pennsylvania, United States of America (covering North America) by their other 100% subsidiary, Engro Innovative Inc. USA (EI). AVN at present operates in three broad categories, which are: 1) automation controls, 2) energy efficient systems, and 3) aftermarket services. As per current shareholding, the Wain Family owns ~100% of the existing 75.5mn shares of Avanceon Limited.

Global Clientele
AVN has been into the automation business for last 24 years and has, over the years, evolved from being an automation company to a 360-degree solution provider for automation, energy management and service & maintenance needs of their customers. The company has explored various frontiers and geographies establishing strong footprint in South Asia, Middle East and USA.
Servicing clients over a span of two decades, AVN has completed several projects for major bluechip companies enabling it to earn strong credentials, move up the learning curve and develop a diverse client base essential for a sustainable business model.

Pakistan operations
In Pakistan, AVN is the only local company with the capability of automation and process controls, energy management systems and specialized solutions. International companies that used to operate in Pakistan have taken an exit due to the prevailing political / law & order situation and no other local company has the expertise to deliver such complex solutions. AVN has taken over several contracts, which were allocated to international contractors earlier due to their inability to meet on ground service requirements.

This window of opportunity has enabled AVN to establish long term relationship with bluechip companies. AVN has implemented various solutions in different companies, including big names like Fauji Fertilizer Company (FFC), Nestle Pakistan (NESTLE), Engro Fertilizer (EFERT) and Engro Foods (EFOODS), Pakistan Petroleum Limited (PPL), Akzo Nobel Pakistan (AKZO), Kott Addu Power Company (KAPCO) and P&G Pakistan, to name a few.

Middle East operations

In the Middle East, AVN has gained dominance through its unique international execution model. The company is able to compete with several major competitors through its aggressive pricing and, therefore, has managed to come in the league of major automation and control provider in the Middle East. Saudi Aramco, Dubai Metro and Kuwait Petroleum are few big names to whom AVN has successfully provided and implemented various automation solutions.

Outlook
Automation and process control companies on a global level have expanded their horizon from core automation to training and implementation of safety systems. Going forward, AVN intends to capitalize on its inherent strengths to further penetrate the Middle East market by setting up offices in Qatar, Kingdom of Saudi Arabia (KSA) and the UAE. The management is committed to quality and to deliver exceptional service standard in the operating segments. AVN’s growth strategy is horizontal; they are committed to horizontal expansion and will enter new markets with the existing service offerings. Management is of the view that there is a lot of unmet demand for automation, energy efficiency systems and aftermarket services in South Asia and Middle East and providing significant growth potential to the company.

AHL

Offline SBM

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Re: AVN -- Avanceon Limited
« Reply #2 on: November 20, 2013, 12:52:47 PM »
book building date
27 -28 November


Prospectus
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Offline SBM

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Re: AVN -- Avanceon Limited
« Reply #3 on: November 20, 2013, 01:13:25 PM »
book building date
27 -28 November


Prospectus

risky investment hai
company has a history of losses, in fact 2012 was the only year it made a profit. it hasnt paid any cash dividends in recent history either
floor price is 14 but book value is 12.92
company is being offered at above book value even though return on equity has been negative for most of its history
Business  model is simlar to trg/netsol type companies
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Online MZ

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Re: AVN -- Avanceon Limited
« Reply #4 on: November 20, 2013, 01:28:11 PM »
Avanceon Ltd... Another Engro feather - subscribe

Innovative Automation & Engineering Limited (IAEL) was incepted in 1989 in Pakistan deals in the business of designing, development and implementation of automation process control, system integration, propriety energy management solutions and support services.
In 2003, Engro Corporation acquired 62.67% of IAEL, and later on Engro Corporation acquired 70% stake in Advanced Automation Associates and then both companies were merged and rebranded as Avanceon.
Company specializes in providing the real time performance management systems for the major manufacturing industries in Pakistan. Currently Avanceon is providing its support and software services to big business giants e.g Engro Group, Nishat group and other big manufacturing companies.

Primary market offering
Currently company has announced the issue of 25.166 million Ordinary shares (25% of total Post IPO paid up capital) of Rs 10 each for cash at a price of Rs 14 per share.
18.874 million Shares (75% of total Issue size) will be made through book building process at a floor price of Rs. 14 (including share premium of Rs 4 per share). Application from institutions and HNW investors for book building process will be entertained from November 27 to 28, 2013.
Remaining 6.292 million ordinary shares (25% of total size) will be offered to general public through Initial Public Offering (IPO) at Strike price which will be determined through the Book Building Process. The dates for IPO is not announced till yet but soon will be announced.

Subscribe the issue
Company has reported noncurrent and current assets as of Rs 652.33mn and Rs 964.54mn as on June 2013. In the debt portion of the company has current liability of Rs 599mn and noncurrent liability of Rs 46mn which we feel is minimal.
Company has investment of Rs 473mn in fully owned subsidiary company Avanceon FZE, which also paid interim dividend of Rs 170mn and net gain of Rs 53million on restructuring arrangement during the CY12 reported in other income segments, which we feel is a good omen.
Given good prospects of the company which is having good clientele in trade and industry - we encourage investors to subscribe the issue.

SCS

Offline SBM

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Re: AVN -- Avanceon Limited
« Reply #5 on: November 20, 2013, 01:34:12 PM »
Another feather in SCS cap of shitty research notes

Engro DOES NOT OWN avanceon

Looks like they dont follow either Engro or read ipo documents before publishing their opinion
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Online MZ

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Re: AVN -- Avanceon Limited
« Reply #6 on: November 20, 2013, 01:42:30 PM »
Another feather in SCS cap of shitty research notes

Engro DOES NOT OWN avanceon

Looks like they dont follow either Engro or read ipo documents before publishing their opinion

  :laugh:

Online MZ

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Re: AVN -- Avanceon Limited
« Reply #7 on: November 20, 2013, 01:47:06 PM »

Offline chotashakeel

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Re: AVN -- Avanceon Limited
« Reply #8 on: November 20, 2013, 02:05:03 PM »
Ajeeb se company hai... kabhie assets 50 million hojate hain kabhie 1 billion. phir pachaaz million, phir 1 billion... wth... lol

Offline chotashakeel

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Re: AVN -- Avanceon Limited
« Reply #9 on: November 20, 2013, 02:06:18 PM »
oh sorry its in AED :P

Offline chotashakeel

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Re: AVN -- Avanceon Limited
« Reply #10 on: November 20, 2013, 02:14:41 PM »
this company is safe from USD/PKR appreciation since significant portion of its assets are outside. In fact it is set to benefit!

Offline engrusama

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Re: AVN -- Avanceon Limited
« Reply #11 on: November 20, 2013, 07:21:03 PM »
Is there any way of knowing wether an Ipo is shariah compliant or not?

Online asim.786

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Re: AVN -- Avanceon Limited
« Reply #12 on: November 21, 2013, 01:15:09 AM »
Another feather in SCS cap of shitty research notes

Engro DOES NOT OWN avanceon

Looks like they dont follow either Engro or read ipo documents before publishing their opinion
Dear brother
This company was made  by engro mechanical engineer named Mr Bukhtyar in 2000 around dealt in automation and control part of industry and first they were distributor of Honywell brand  which were installed in scs report mentioned companies, company flurished in three to four years  as said IN scs report engro bought its stake ITS TRUE
Now they are in middle east and its middle east CEO MY FRIEND
Top Picks. EFOODS,PPL,SHEL,FFC,PNSC,JSCL,BIPL.FFBL,IGIIL!CSAP


Offline SBM

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Re: AVN -- Avanceon Limited
« Reply #14 on: November 21, 2013, 10:06:16 AM »
Another feather in SCS cap of shitty research notes

Engro DOES NOT OWN avanceon

Looks like they dont follow either Engro or read ipo documents before publishing their opinion
Dear brother
This company was made  by engro mechanical engineer named Mr Bukhtyar in 2000 around dealt in automation and control part of industry and first they were distributor of Honywell brand  which were installed in scs report mentioned companies, company flurished in three to four years  as said IN scs report engro bought its stake ITS TRUE
Now they are in middle east and its middle east CEO MY FRIEND

engro sold its stake ti Wain family in 2012.
kindly read the ipo document
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Online asim.786

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Re: AVN -- Avanceon Limited
« Reply #15 on: November 21, 2013, 10:17:15 AM »
Another feather in SCS cap of shitty research notes

Engro DOES NOT OWN avanceon

Looks like they dont follow either Engro or read ipo documents before publishing their opinion
Dear brother
This company was made  by engro mechanical engineer named Mr Bukhtyar in 2000 around dealt in automation and control part of industry and first they were distributor of Honywell brand  which were installed in scs report mentioned companies, company flurished in three to four years  as said IN scs report engro bought its stake ITS TRUE
Now they are in middle east and its middle east CEO MY FRIEND

engro sold its stake ti Wain family in 2012.
kindly read the ipo document

i dont say engro never sold might be sold, i m saying he bought its shere once
Top Picks. EFOODS,PPL,SHEL,FFC,PNSC,JSCL,BIPL.FFBL,IGIIL!CSAP

Offline SRN

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Re: AVN -- Avanceon Limited
« Reply #16 on: November 21, 2013, 10:44:43 AM »
Please read the para 5.1.1 of the Avanceon prospectus under the caption "The Company", which clearly says :

The company was incepted in 1989 within Pakistan by Mr.Bakhtiar Wain as Innovative automation and Engineering Ltd. which undertook the business of providing turnkey automation, instrumentation and enineering solutions. In 2003 62.67% shareholding in the  company was acquired by Engro Corporation with Mr. Wain as its CEO. Subsequently as part of its entry into the North American market, Engro Corporation acquired 70% stake in Advanced Automation Associates in 2007 and the entire operations of IAEL and AAA were merged and rebranded as Avanceon.

Offline SBM

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Re: AVN -- Avanceon Limited
« Reply #17 on: November 21, 2013, 10:50:18 AM »
fml

theek hai. khush raho. avanceon bhi engro ki hai aur mera ghar bhi engro ka hai.

 huhu huhu

poora paragraph bhi parhna haram hai kia ?

During March 2012, as part of its business realignment strategy, Engro Corporation resolved to
divest its shareholding in the Company to the existing shareholders of Avanceon i.e. Mr. Bahtiar H.
Wain and his associates. The sell off was finalized under a Global Restructuring Agreement (the
“Agreement”) dated March 28th, 2012. Key terms of which are as follows:
 
“The transfer of shareholding took place w.e.f. 31 March 2012, Avanceon FZE has transferred
62.67% shareholding in Engro Innovative or 43.87% shareholding in Avanceon LP to Engro
Corporation and in return Engro Corporation has settled the outstanding liability of Avanceon and
has applied for release of bank guarantees in the name of Engro Corporation. Engro Corporation has


if you dont believe this, you can always cross check with engro annual report.
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Offline 007

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Re: AVN -- Avanceon Limited
« Reply #18 on: November 21, 2013, 10:54:20 AM »
Another feather in SCS cap of shitty research notes

Engro DOES NOT OWN avanceon

Looks like they dont follow either Engro or read ipo documents before publishing their opinion
Dear brother
This company was made  by engro mechanical engineer named Mr Bukhtyar in 2000 around dealt in automation and control part of industry and first they were distributor of Honywell brand  which were installed in scs report mentioned companies, company flurished in three to four years  as said IN scs report engro bought its stake ITS TRUE
Now they are in middle east and its middle east CEO MY FRIEND

engro sold its stake ti Wain family in 2012.
kindly read the ipo document

Ouulman is spot on its got nothing to do with Engro, Avanceon business is Consultancy and its own by wain family.

+1 for ouulman