obviously..however the margin plays between buy and sell are way narrower...resulting in belaboured price appreciation and swift price falls...unless you anticipate foreigners buying this counter in proper bulk...it's downhill on this variable alone...ask yourself..it is more affordable to who? the structuring will tell us..likely for...Wanjiku? It's time for some owner to dump...for a more profitable venture...Look at what IPO type splits/Massive share bonuses do to solid counters like EB,SCOM and KCB...

I think this whole move will dilute this counter and prices will take a nose dive down south...in this climate where some counters r going weeks without a single trade, where will buyers come from? Unless maybe foreigners....my eye's are fixed on this counter.

So we are clear... a Bonus or a Split (almost the same thing)... will seem to cause a price drop but not really...

Ceteris Paribus applies

Current Price = 140
A 5:1 split (5 shares for every 1 you have so if you have 100, you will get 400 'more' for a total of 500) should be 140/5 = 28

The EPS, NAV/Share all reduce proportionately.

Therefore 28/- is NOT a 'dilution' nor a 'price drop'. The whole cake has not changed in size.

If I have 1,000 shares @ 140 = 140,000/-
After the split I have 5,000 @ 28 = 140,000/-

KPLC pays 8/- dividend/share = 1,000 x 8 = 8,000
After split 1.60/share = 5,000 x 1.60 = 8,000

@vvs
you are right on the size of the cake not changing,but there will be more scavengers for this cake in terms of new ordinary shares for the goverment.
Unless you are saying,the dividend pain currently to the preferential shares when dividend by whatever number of new orinary shares to GOK,will give an EPS of 8 as you calculated above.

I also wonder why they picked 13.8bn (87% of the preferred shares) & not the entire 15.9bn

Perhaps KPLC will be 'repaid' some of the money in exchange for assets or other payables due from GoK?