After my 1000+% gain with CIC, this is what I concluded regarding buying shares that are going to be listed. I foresee Unaitas following a trend I saw with CIC:

There are THREE Magic Numbers that dominate Pre-Listing Stock Purchases:

1. SPLIT FACTOR - This is the number of times one share will be split before being introduced into the market. The first reason as to why a share is split before listing is to make its Ordinary Share Price fall in tune with the Ordinary Share Price of “Peer” counters/shares in the stock exchange. The other reason is to ensure that the quantity of shares available for trading is sufficient enough to sustain the volume demands in the stock exchange. Examples in Kenya are The Co-operative Bank which was split 100 times before listing and CIC Insurance Group which was split 20 times before listing.

2. LISTING PRICE - This is the price at which each share of a company will be listed. Any company listing at the NSE is required by laws and regulations to indicate and support the price that will be applied during listing. The company arrives at this price through a valuation of its business to determine the present value of each share.

3. MARKET PRICE - once the company is listed, its price will henceforth be determined by market forces of demand and supply. Some prospective buyers will use various analysis tools to determine the price. Other buyers will have no clue but will use the going prices in the market to buy the shares since they will be convinced by their stockbrokers, friends or relatives that the shares are a good investment. As they do all these gymnastics, the investor who purchased the shares before listing is just busy doing other things that matter to his/her life, WAITING FOR THE BIG KILL!!