KCB hehehehe!!!
Any clue of
The rights price
The Ratio of offer to existing share holders
The time frame ?
Bad on the short term but good for long term if the raised funds are judiciously used

This is the only info I can dig out from the KCB rights issue possibility/

http://www.businessdaily...2/-/6by13t/-/index.html

If others have any other relevant info please share

@Sparkly KCB is paying the price of over expansion to Sudan, Uganda, Tanzanic and might be Rwanda. I hope they do their SWOT /CBA analysis well, this requires a lot of funds

Good for long term if all these translates to good profit.
Too bad on long term if they consistently operate at a loss. I believe they need adequate working capital without digging too much on their reserve.
Though the frequency of rights issue (after 2 years), but they are also expanding too fast. The future will tell. I will take the rights if offered.

I have seen my local bank First Bank embark on rights issue on every othe year for 3 consecutive times for expansion (though internal), and it bec ame a success story.
Some banks business model are averse to corporate bonds. I think MD Martins Otieno is towing that line.

I think an investor needs to ask themselves this. Its 2 years since KCB did a Ksh2.5bn rights issue. Has KCB increased its profit by Ksh2.5bn since then?

I rest my case. Maybe its time for Odour to move on.

Yep 16 bob or less very likely to increase their share capital by extra 1.1B as they are targeting to raise 15 Bln
In 2008 5 Bln was raised not 2.5BLN (1 for 9 ratio)

The fears of dilution seemed to dominate online debates about the KCB rights issue.

However, others were of the view that the increased business from the funds raised would be of benefit to shareholders in the long-term


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