KQ currently with about 461.7M issued shares, to raise Ksh 22B would mean each share bringing about Ksh 48 during the rights.

One way to do this would be to create an additional (461.7 X 2)= 924M shares. This would then be issued as a 2:1 rights offer (each existing share eligible for 2 rights shares) at a price of about Ksh 24 per share.

The problem here is that the dilutional effect on EPS that will result from such a rights issue would be massive! This would possibly push the post rights share price to a single digit figure.

I therefore forsee a mixed rights and bonus issue to cushion the shareholders against value erosion.

But it would be prudent to avoid this share in the short term until the Capital call details are clear.

Happy hunting.