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KPLC 10 Billion rights issue- a possibility or a pipedream?
guru267
#11 Posted : Thursday, March 18, 2010 9:49:56 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@mukiha you can use the info you gave to get the price.. we have the exact amount they are wanting to raise and then we have the information on the ownership change...

just correct me if this is total crap...

15.9bn converted at an average of sh155.. gives about 102mn shares and add this to current issued shares it gives about 182mn shares..

75% of tht gives 136mn share for GOK.. since the final GOK ownership will be 51% total issued shares after the issue gives 136mn *2 which gives 273mn shares..

to find the number offered in the rights issue: 273mn-182mn= 91mn

10bn/91mn= sh109 as rights issue price...
Mark 12:29
Deuteronomy 4:16
mukiha
#12 Posted : Thursday, March 18, 2010 10:19:28 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
You are going about it in reverse!

You start by determining how much to raise - in this case sh10b

Then you set the price - as explained earlier, e.g., 3-month weighted average plus a 20% discount

The divide the sh10b by the price to get the number of shares required.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
guru267
#13 Posted : Thursday, March 18, 2010 10:31:02 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@mukiha i went in reverse order because i didnt know how to arrive at the rights issue price...

but using your formula or mine gives about the same answer for the number of rights issue shares that will be offered... (around 85mn-95mn shares)

thanx for everything!!
Mark 12:29
Deuteronomy 4:16
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