My take is that an oversubscription would occur if investors bid for the GoK's rights over and above their entitlement. This assumes that the GoK shall not be selling its rights.

There is no way these rights will be oversubscribed. The last rights issue was also undersubscribed, and the quantum was smaller.

My understanding rights:

Existing shareholders are invited to buy more shares depending on the number they currently have. In this case 2new for every 5 held.

KCB has 2,217,777,777 shares therefore there are 887,111,110 rights on offer.

In a rights issue, you cannot apply for more than your entitlement; unless you acquire some one elses entitlement. That's why the rights are put in the market.

Since no one can apply more than their entitlement, then there cannot be an over-subscription.

It has nothing to do with availability of capital in the market.

Mistaken, you are, Mukiha... Lesson, need to learn on Rights Issues, you do...

Apply, one can, for more than Rights allocated to oneself. Look at Rights Application, section provided for additional shares above & beyond allocated Rights, there is...

@mukiha, from my understanding, all the rights belong to shareholders. However, several courses of action can take place for existing shareholder, who may choose:

1. to take up all their rights.
2. to take up some and sell the rest to a new investor.
3. to take up all and apply for additional unalloted rights from KCB.

4. to sell all their rights to a new investor. New investor would take up all the acquired rights and when doing so, have an option to apply for additional unalloted rights from KCB.
5. to do nothing leaving KCB will unalloted rights, available for whomever applies for more than their allotment.


Note: In the process of applying for additional rights, people may apply for more than is available, hence the 'oversubscription'.