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moneysense.ca, 28/02/06
Tim Hortons IPO Vital Statistics
Wendy’s filed more information on the upcoming IPO of its Tim Hortons subsidiary recently. The highlights of the filing are:
- Ticker: THI on TSX and NYSE
- Price range: $21-$23
- Offering size: up to 29 million shares (or up to $667 million)
- Over-allotment Option: up to 4.35 million shares
- Shares outstanding: 189 million
- Market capitalization: $3.9-$4.3 Billion
- Underwriters: Goldman Sachs, RBC Capital Markets, JPMorgan, Scotia Capital
- Number of restaurants: 2,597 in Canada, 288 in U.S.
- Revenues (2005): $1.48 Billion
- Operating Income (2005): $290 million
- Net Income (2005): $181 million
- EPS: 96¢
- Dividend policy: 20¢ per share.
- P/E (based on $22 share price): 23
- Dividend yield (based on $22 share price): 0.9%
- 5-year Revenue growth: 9.4%
- 5-year Income growth: 7.3%
- Same-Store Sales (2005 over previous years): 5.2% (Canadian stores) and 7.0% (U.S. stores)
- New Stores Opened (2005): 187
All figures in Canadian Dollars
moneysense.ca, 28/02/06
I heard that most of the IPO shares will be sold in the US even though the big demand for the shares will be from retail investors in Canada.
I am thinking that the best way to get in might be to purchase Wendy’s and wait for them to spin Timmy shares out to their shareholders in the future.
I think so too. Tim’s is selling at a slightly rich PE of 23, so I am probably going to avoid this IPO. Here are some earlier posts on th subject:
How to get Shares in Tim Hortons?
Comments on Tim Hortons IPO
Is this a good investment is my question? Ten years ago where I live in Ottawa had NO Tim Horton’s and the nearest was 5 miles away. Ten years later we have 5 of them, how does the “Company” make money? Is it on the sale of coffee to it’s franchisees or is it on more franchises? If it is the latter, I think waiting for it to come down in price might be a safer bet? (opinion)
–C8j
Ontarians sure love their Tim Horton’s!
Yes we do!!!! I have linked to this story from my web site (important to know the REAL numbers before you buy).
–C8j
I would like to buy Tim’s shares but have no idea how to do so. can you help?
It is probably impossible for average retail investors to get the Tim Hortons shares pre-IPO. You can buy it on the open market when it starts trading on or after March 23rd.
Also check out my earlier post:
How to get Shares in Tim Hortons?
I understand the IPO and the benefits to Wendy’s that come from the IPO…obviously it raises cash and also inflates Wendy’s share price.
CONFUSION: What motivation is there for Wendy’s to spin off ALL of Tim Horton’s as a special dividend??? Is there a huge tax benefit?
Overvalued, the IPO should not be more than $11.00
I just posted my thoughts on my blog about “Why I Won’t Buy Tim Hortons“. I’m an amateur at this and looking forward to your thoughts and counter-analysis!
I was hoping to achieve a study about this “hype” and “mania” through the discussion. And seems like I may have some supporters based on the comments I’ve read here! Interesting!
[...] Why Is Valuation Important? As a value investor, one of the things I’m concerned is finding the intrinsic value of the company vs. the market perceived value. The market perceived value is best described using the baseball card analogy. It’s a matter of supply and demand. Why do you think the IPO price was jacked up? The demand from investors were strong and you really cannot fault the company for taking advantage of the situation to raise more funds. My preliminary screen for a company for to check out a company’s return-on-equity. Tim Hortons’ 2005 income was approximately $181 million (courtesy of Canadian Capitalist). This represents an ROE of 3.5% – not a truly enticing figure. [...]
where can i purchase the shares?
from your broker.
[...] Canadian Capitalist Tim Hortons IPO Vital StatisticsWendy s filed more information on the upcoming IPO of its Tim Hortons subsidiary recently. The highlights of the filing are: Ticker: THI on TSX and NYSE; Price range: $21-$23; Offering size: up to [...]
[...] Canadian Capitalist Tim Hortons IPO Vital Statistics Canadian Capitalist Tim Hortons IPO Vital StatisticsWendy s filed more information on the upcoming IPO of its Tim Hortons subsidiary recently. … [...]
[...] Canadian Capitalist Tim Hortons IPO Vital Statistics Canadian Capitalist Tim Hortons IPO Vital StatisticsWendy s filed more information on the upcoming IPO of its Tim Hortons subsidiary recently. … Permalink TrackBack [...]
[...] Canadian (like most of us are), and you haven’t bought Tim Horton’s stock yet (see the Canadian Capitalist for his overview on that, he has some good stuff on it), READ closely the Roll Up The Rim “fine [...]
Didn’t Wendy’s buy Timmy’s for around 1 billion and didn’t Wendy’s get around 1 billion back by offering only 10% of shares by taking Timmy’s public? Not bad getting something paid for 100% by only offering 10% of it to the public and still owning 90% for free. Is this the case or am I wrong in my information and calculation?