selah wrote:I think the purpose for the introduction is not necessarily to attract investors into buying their shares.I think the listing is a way of creating a market for their convertible Bonds.
The only way they can shore up EACables is by buying the shares which will eat their little capital.
TCL needs a huge capital outlay which even the sell of its shares cannot satisfy their thirst so they are forced to use ingenious ways to generate capital.
@selah, the purpose of the introduction is to attract investors into buying their shares so that they can be able to raise capital through the ingenious ways.
Quote:“The listing is part of a long-term strategy to ensure that the Company diversifies and grows the investor base, in line with the strategic focus on Power Infrastructure, Transport Infrastructure and Specialised Engineering”, commented Dr Gachao Kiuna, the group Chief Executive Officer. “These sectors are capital intensive and a key driver of success will be the ability to develop attractive sources of funding and technical partnerships.”
TransCentury is like an industrial company with very huge capital requirement in order to realize its potential. The ingenious ways of raising capital that have been developed (and those to be developed) will only work if the share attracts very high demand and trades at very high prices which may not happen. KES.50 is gross overvaluation of TCL. And consider one is staring at 36% dilution from the conversion of the Eurodollar bonds. My 2 Euro Cents