@Waithaka

That is a massive share dilution especially given the fact that KCB has a very large free float of shares. I will have to do my math and exit. will wait for it to behave the safcom way during listing else I am sure the stock will trade in the current price of equity. No fundamental analysis, just looking at similar banks with similar number of shares and relative profitability being slightly similar. I guess it will trade at around 18 bob ex-dividend.

Happy hunting pals

When is the rights prospectus being released?

Not sure empty hand. May be KCB management will try to buy time and hope that the share will make some recovery..or try to make some strategic announcement..like Sudan branches performing well bla bla bla..

@2012 i dont think this stock can go down that far otherwise it would be a serious market misjudgement...

right now this stock is being heavily sold mostly by fatigued retail investors who have no money or interest to take up their rights and are not ready to face dilution of their stock...

if it can go down to 18.5 i see tremendous medium term value even from a dividend point of view so i will get in at that level and average down my buy price with the rights issue...

For the doubting Thomases, today KCB demand and supply have almost evened out. Like I predicted yesterday the price is unlikely to go lower than 19. May be 21 would be a better price and after issuing of bonus it will drop to may be 18 and thereafter move to the 20s.