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Family Bank is the Sh30 Price Tag Justifiable?
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the deal
#1 Posted : Tuesday, August 30, 2011 4:52:55 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Family Bank is a Kenyan Lender which initially started out as a building society in 1984, Family Bank was converted into a fully-fledged commercial bank on 1st May 2007 and today boosts an asset base of more than Sh20 Billion, has more than 600,000 customer’s, an over Sh11 Billion loan book, 63 branches country wide and over 1000 employees. Family Bank plans to list by way of introduction on 31st of October 2011 on the financial segment of the Nairobi Stock Exchange (NSE), the company is more likely to list at an introductory price of Sh30 valuing the bank at Sh7.3 Billion, the stock currently has 242 Million shares. AfricInvest a Mauritius based private equity (PE) firm bought a 25% stake in Family bank worth Sh1.2 Billion, implying that the private equity firm paid Sh19.8 a share to get the 60.5 Million shares which are equivalent to 25% of Family Bank.

Read more http://www.contrarianinv...prehensive-analysis.html
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Mainat
#2 Posted : Wednesday, August 31, 2011 12:06:45 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Deal-good piece. Your game is getting sharper. AfricInvest holds 22%. Imho, its worth around Ksh16. On a good day. If HFCK was priced ksh16, I'd buy over FamBank. Shoddily run and unambitous.
Sehemu ndio nyumba
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earthvoice
#3 Posted : Wednesday, August 31, 2011 12:47:47 AM
Rank: Member

Joined: 1/29/2011
Posts: 257
Mainat wrote:
@the deal - good piece. Your game is getting sharper.

Hear! Hear! Applause Applause
"All intelligent investing is value investing -- acquiring more than you are paying for. You must value the business in order to value the stock." - Charlie Munger.
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the deal
#4 Posted : Wednesday, August 31, 2011 10:30:00 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
earthvoice wrote:
Mainat wrote:
@the deal - good piece. Your game is getting sharper.

Hear! Hear! Applause Applause

Thanks guyssmile
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underweight
#5 Posted : Wednesday, August 31, 2011 11:07:44 AM
Rank: Member

Joined: 1/25/2009
Posts: 184
Location: For now El-Fashier - Darfur
I've been trying to exit over the counter at that price of 30 but in vain. Hope to exit the 1st day it lists at any price above 24 and buy back as soon as it finds its correct price. Obviously downwards! We can take a bet on this. Rem the right issue wasn't taken fully up!
"A bad decision made now is beta that a good one made later!!"
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stocksmaster
#6 Posted : Wednesday, August 31, 2011 12:55:30 PM
Rank: Member

Joined: 9/26/2006
Posts: 463
Location: CENTRAL PROVINCE
Mainat wrote:
Deal-good piece. Your game is getting sharper. AfricInvest holds 22%. Imho, its worth around Ksh16. On a good day. If HFCK was priced ksh16, I'd buy over FamBank. Shoddily run and unambitous.


NIC Bank which i would choose over Family bank is trading at a trailing P/E of 6.5.......why would i pay three times more (P/E of 18) for Family Bank?

It would be more advisable for the Bank not to list until the NSE Financial sector stock prices improve. The current OTC prices seem more favourable to its shareholders than what they will get on listing......A sub Ksh 20 price will surely prevail.

I have a feeling that after the Britak shares hit the market, the ensuing price massacre will make Family Bank think twice!

Happy Hunting
x handle: @stocksmaster79
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Mainat
#7 Posted : Wednesday, August 31, 2011 2:15:06 PM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
The rationale for the IPO and its timing. Something that I never used to consider as much, but key this year. Doing an IPO this yr implies the anchor shareholders are desperate to get out.
Sehemu ndio nyumba
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stocksmaster
#8 Posted : Wednesday, August 31, 2011 3:49:13 PM
Rank: Member

Joined: 9/26/2006
Posts: 463
Location: CENTRAL PROVINCE
Mainat wrote:
The rationale for the IPO and its timing. Something that I never used to consider as much, but key this year. Doing an IPO this yr implies the anchor shareholders are desperate to get out.


My thoughts exactly......why is everyone in a hurry to exit positions that they have held for years at the worst possible time? Doesn't make sense at all?

Happy hunting....
x handle: @stocksmaster79
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VituVingiSana
#9 Posted : Wednesday, August 31, 2011 5:01:43 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
Not sure about FB but most 'new' listings have some sort of restriction on sales by 'insiders'...

Many investment funds prefer 'listed' firms too...

At 30/-... I have many more choices!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Mainat
#10 Posted : Thursday, September 01, 2011 10:08:26 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Vitu-they are listing by introduction. The trend now is that anchor shareholders can sell upto 50% of holdings within the first two years and the rest thereafter
Sehemu ndio nyumba
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