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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Distribution Finance Capital - Spectacular IPO premium for fast growing business lender

July 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DFCH
  • Price:
  • 122.5p
This year has seen slim pickings in the new issues market but one that caught our attention was Distribution Finance Capital (DFC), which was placed on AIM by broker Macquarie at 90p a share on 9th May and immediately gapped higher to 132p, a huge 47% premium at the peak.It’s easy to see the attraction. DFC is a niche lender that builds relationships with manufacturers and then provides working capital finance to their customers, which operate within their supply chains. These customers  include dealerships which sell motor vehicles (typically mopeds, scooters, motor cycles and light commercial vehicles but not cars), caravans, industrial equipment and agricultural equipment.Essentially, DFC has identified a gap ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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