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Ndegwa family gives up right to raise stake in NIC
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gesowan
#1 Posted : Wednesday, October 10, 2012 11:33:44 PM
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Joined: 11/6/2010
Posts: 289
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the deal
#2 Posted : Thursday, October 11, 2012 12:36:49 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
If you have an opportunity to raise money...raise money...this banks Loan To Deposit ratio stands at 86%...the bank has one of the weakest capital ratio's around...with the new prudential guidelines this bank could be raising capital again in the nxt 2 years... shareholders have to be content with a measly dividend & a dilutive yearly bonus lol
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gesowan
#3 Posted : Thursday, October 11, 2012 1:23:30 AM
Rank: Member

Joined: 11/6/2010
Posts: 289
if wishes were not guided by law...why not just take the 7 billion and capitalize the bank as in issue them the extra shares they applied....this will be a refund galore and a loss to those who "tied" their money
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  | | Edit by user: Thursday, October 11, 2012 1:24 AM | Reason: Not specified
guru267
#4 Posted : Thursday, October 11, 2012 6:09:34 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
the deal wrote:
shareholders have to be content with a measly dividend & a dilutive yearly bonus lol


Think before you speak... How are bonus shares in ANYWAY dilutive to shareholders??
Mark 12:29
Deuteronomy 4:16
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guru267
#5 Posted : Thursday, October 11, 2012 6:13:45 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
The allocation has not been announced. I figure it will be in the newspapers tomorrow. I wonder if the Ndegwas used their clout to get 35%. I think the Ndegwas called Ndungu who called Githae who told Muthuara that let the brothers increase it to 35%. It's all in-house. Tuko Pamoja.


I think someone has to swallow all these words!! All People are trying to do business and all we can think is conspiracy Sad
Mark 12:29
Deuteronomy 4:16
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mkonomtupu
#6 Posted : Thursday, October 11, 2012 9:37:13 AM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
guru267 wrote:
VituVingiSana wrote:
The allocation has not been announced. I figure it will be in the newspapers tomorrow. I wonder if the Ndegwas used their clout to get 35%. I think the Ndegwas called Ndungu who called Githae who told Muthuara that let the brothers increase it to 35%. It's all in-house. Tuko Pamoja.


I think someone has to swallow all these words!! All People are trying to do business and all we can think is conspiracy Sad



I agree @guru, all the Ndegwas were trying is to ensure is ensure there was full subscription. They have built a great brand and it's their ethical conduct of business that gives the small shareholders confidence to throw cash at the company. Anyway just wondering might the brothers have pepped in here and saw the ruckus raised here and decided not to participate in the untaken rights???
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King G
#7 Posted : Thursday, October 11, 2012 9:51:47 AM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
Once on a while it is good to throw tantrums with our small monies.

Good they have listened to the cries of the small shareloders, me included!
Thieves
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  | | Edit by user: Thursday, October 11, 2012 10:05 AM | Reason: Not specified
the deal
#8 Posted : Thursday, October 11, 2012 10:34:15 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
guru267 wrote:
the deal wrote:
shareholders have to be content with a measly dividend & a dilutive yearly bonus lol


Think before you speak... How are bonus shares in ANYWAY dilutive to shareholders??

its you who doesnt think 1. Any new shares created either through a bonus issue, rights issue, secondary offering or conversion of preferance shares will always result in the increase of the number of issued shares. 2. The new shares will always dilute the EPS and the DPS unless the company increases its payout ratio or EPS rises faster than the dilution factor.
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guru267
#9 Posted : Thursday, October 11, 2012 4:30:27 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
the deal wrote:
The new shares will always dilute the EPS and the DPS unless the company increases its payout ratio or EPS rises faster than the dilution factor.


@the deal you need to improve your accounting knowledge.. Let me help!

I hear what you are saying but with bonus shares it is very very different from rights issues, preferred issues and bond conversions!

1.Bonus shares do not increase or decrease the capital of a company!

2. Every shareholder receives the bonus shares for free pro rata hence the % ownership of ALL shareholders remains the same! (not dilutive)

3. If i had 1,000 NIC shares bought at an average cost of 30bob, when they give a 1:10 bonus i will get an extra 100 shares & my average cost will now be (30k/1,100 shares) which is 27.3bob...

If the EPS for NIC was 3bob and falls to 2.73bob because of new shares my P/E still remains at 10..

If DPS was 1bob and fell to 91cents because of the new shares i would still receive the same dividend... (1000*1)=(1,100*0.91)=1k

The value of my shares also remains the same... (1,000*30)=(1,100*27.3) = 30k
That is why a bonus issue is not dilutive provided the shareholder does not sell their bonus shares!

in the other share issues and debt conversions introduction of new investors and lack of funds by some shareholders are the main cause of dilution!


Mark 12:29
Deuteronomy 4:16
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  | | Edit by user: Thursday, October 11, 2012 4:40 PM | Reason: Not specified
Rollins
#10 Posted : Thursday, October 11, 2012 4:44:03 PM
Rank: Member

Joined: 3/23/2011
Posts: 503
guru267 wrote:
the deal wrote:
The new shares will always dilute the EPS and the DPS unless the company increases its payout ratio or EPS rises faster than the dilution factor.


@the deal you need to improve your accounting knowledge.. Let me help!

I hear what you are saying but with bonus shares it is very very different from rights issues, preferred issues and bond conversions!

1.Bonus shares do not increase or decrease the capital of a company!

2. Every shareholder receives the bonus shares for free pro rata hence the % ownership of ALL shareholders remains the same! (not dilutive)

3. If i had 1,000 NIC shares bought at an average cost of 30bob, when they give a 1:10 bonus i will get an extra 100 shares & my average cost will now be (30k/1,100 shares) which is 27.3bob...

If the EPS for NIC was 3bob and falls to 2.73bob because of new shares my P/E still remains at 10..

If DPS was 1bob and fell to 91cents because of the new shares i would still receive the same dividend... (1000*1)=(1,100*0.91)=1k

The value of my shares also remains the same... (1,000*30)=(1,100*27.3) = 30k
That is why a bonus issue is not dilutive provided the shareholder does not sell their bonus shares!

in the other share issues and debt conversions introduction of new investors and lack of funds by some shareholders are the main cause of dilution!


@Deal, your turn please



Even a BrOKeN clock is right twice a day
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