Brewdog crowdfunding share offer V

[wydffa]

From browsing a supermarket website for Christmas beer I found myself reading the prospectus for Brewdog's fifth crowdfunding share offer. It looks like an exciting company but can anyone analyse the prospects better than me?
It is valued at £1 billion and about a fifth is owned by private equity company TSG AIV in America. Brewdog is expanding in USA, Australia and China. TSG owns or did own American brewer Pabst (I couldn't find much in a quick search). TSG have priority C shares and are guaranteed an 18% annual return if Brewdog goes public within a certain time.
I do not know why Brewdog needs more money 7 months after TSG's large injection of cash.
Brewdog distributes 10% of any profit to staff and 10% to charity.
I have tried to compare it with Fevertree (valued at £2 billion) but don't know what the data really means.
Anyway, I like craft beer and minimum spend is 2 shares for under £100. So it is a matter of how much to spend, but for such a punt I am thinking of £500-1000. Shareholders benefit from a discount online and in their bars, which get good reviews on Tripadvisor.
Early crowdfunding shareholders have made big gains but shares can only be sold on 1 day each year through a matching website for buyers/sellers. Not many people sold shares when the opportunity arose when TSG came aboard.
I would be interested to hear thoughts/advice from others.

[wydffa]

here is the prospectus web address:

https://www.brewdog.com/equityforpunks/ ... s-download

[gbjbaanb]

From browsing a supermarket website for Christmas beer I found myself reading the prospectus for Brewdog's fifth crowdfunding share offer. It looks like an exciting company but can anyone analyse the prospects better than me?
It is valued at £1 billion and about a fifth is owned by private equity company TSG AIV in America. Brewdog is expanding in USA, Australia and China. TSG owns or did own American brewer Pabst (I couldn't find much in a quick search). TSG have priority C shares and are guaranteed an 18% annual return if Brewdog goes public within a certain time.
I do not know why Brewdog needs more money 7 months after TSG's large injection of cash.
Brewdog distributes 10% of any profit to staff and 10% to charity.
I have tried to compare it with Fevertree (valued at £2 billion) but don't know what the data really means.
Anyway, I like craft beer and minimum spend is 2 shares for under £100. So it is a matter of how much to spend, but for such a punt I am thinking of £500-1000. Shareholders benefit from a discount online and in their bars, which get good reviews on Tripadvisor.
Early crowdfunding shareholders have made big gains but shares can only be sold on 1 day each year through a matching website for buyers/sellers. Not many people sold shares when the opportunity arose when TSG came aboard.
I would be interested to hear thoughts/advice from others.

I would never touch an illiquid stock like this unless I wanted the perks. As it is, Marstons give you a 20% discount and are listed on the real stock markets (and gave me the card even though I hold in a nominee account, so kudos to them for bothering to find me!). I think there is a lot of competition in the craft ale industry, so maybe that's why Brewdog want more cash - either that or they're expanding too fast and will trip up eventually.

[JMN2]

Brewdog is one of my lottery tickets, I bought shares from the 2nd offer a few years ago. Brewdog's original idea was to list on AIM at around £1bn MV but apparently the current plan is around £4-£5bn so it is a severe case of world domination. My original idea was to have a windfall when the main owners sold to the InBev's of the beer world ie cashed out and sold their souls to the megabrewers.

I bought 20 shares at total sum of £475. After two corporate actions I now have 1000 shares. I don't seek out their beers or bars nor do I use online discounts. Current true valuation? No idea.

[gbjbaanb]

Current true valuation? No idea.

good luck to you.

in 2015 - £306m "with £100m turnover by 2017" (source: telegraph article)
In 2017 - £1bn from a 22% stake for £213m by TSG equity partners. In 2016 trading profit was £7.1m off £70m turnover. (source: their prospectus)

Does seem a little excessive valuations for that profitability.

You have 1000 out of the total issue of 2.1m shares if their 5th fundraising hits their target.

[JMN2]

I am a big believer in "lottery tickets" - due to some reason be it irrational or rational a risk reward ratio looks appealing. Lose a small amount that won't change your lifestyle or win big, these opportunities are worth picking up. I've followed the craft beer scene for years so when two some would say hypocrite holier than thou chaps with grand plans swear never to sell out to mass produced swill producing mega corporation then I just had to see it through.

I would not buy at this point in time, I think it may be a bit late, but who knows?

[wydffa]

Many thanks for the comments. After further reading I see Brewdog shares as a one -off membership fee to enjoy the feeling of participation, discounts and, if you live near Aberdeen, the AGM. Also, my own investing guidelines require investments to be in collective vehicles only.

My excitement, however, at the thought of becoming a an equity punk means that I have bought the minimum 2 shares for <£50. And, as claimed in the confirmation of purchase, I do indeed feel better for it!

During my reading around the drinks sector I saw that Diageo has done quite well so topped up in FGT where it is their largest holding at 10%.

[JMN2]

I have been receiving some emails from Brewdog into my junk folder, apparently share offer V has now raised £11.2m (initial target £10m) and "welcomed" 20k investors (does welcome mean new investors?). Deadline to invest has been extended to 15th October 2018 "due to unprecedented demand". Shareholder benefits have been updated.