That P/E is a huge no for me! There are many other stocks in the NSE with way better valuation with a number trading below book value!!!

This one I sit out and watch!

I will be buying another bank starting this week. I am too over invested in banks but it still makes sense investing in them.

The price of KPC might go up but the value will remain low.

OMCs will have to buy, NSSF might be forced to buy etc. Given that these are not traders/short term investors, available volumes might be low thereby supporting the price.

But I still would rather buy value!!!

From the wall of #TheKenyanWallstreet

Dr. Kenne Belgrade of Faida Investment Bank, the Lead Transaction Advisor, speaks on the KPC IPO Valuation.

• Three methods used: income, assets, peer comparison.
• Independent asset valuer priced KPC assets at ~KSh 124Bn.
• EV to EBITDA chosen to reflect operating cash flow.
• Peer set drawn from India and developed markets.
• Peer median EV to EBITDA ~9.56x.
• IPO priced at ~8.1x EV to EBITDA to support wide Kenyan ownership.

Dr. Kenne Belgrade on post-listing price dynamics.

- Sees upside adjustment after listing, not downside correction.
- Pushes back on narratives of a sharp post-IPO price fall.
- Points to unmet institutional demand at the offer stage.
- Expects secondary-market buying from investors excluded in the primary.
- Long-term capital positioned to absorb any retail exits.

Kenya Pipeline growth, margins, and comparables.

◉ Kenya Pipeline CAGR about 8.4%, versus KenGen and KPLC near 2%.
◉ Growth viewed as more critical than headline margins.
◉ Dividend yield alone seen as an incomplete return measure.
◉ Safaricom identified as the closest local comparable by scale and economics.
◉ Safaricom five-year CAGR around 8.8% versus Kenya Pipeline at 8.4%.
◉ EBITDA margins similar, Safaricom near 50%, Kenya Pipeline near 49%.
◉ Dividend yields comparable, Kenya Pipeline about 3.9%, Safaricom about 4.1%.
◉ Valuation gap highlighted, Kenya Pipeline around 1.7x book versus Safaricom near 5x.

*Why Kenya Pipeline does not belong in the same valuation bucket as KenGen, KPLC, or TotalEnergies.*

➠ TotalEnergies Kenya not comparable, market cap about KSh 6Bn versus KPC cash of KSh 16.2Bn.
➠ KPC operates a midstream monopoly, Total is a downstream oil marketer among 140+ competitors.
➠ KPLC trades near 0.22x book, implying asset pricing unsuitable for a strategic national asset like KPC.
➠ Low PE at KPLC and KenGen reflects weak growth and structural constraints, not undervaluation.
➠ PE ratios must adjust for both margins and growth, not viewed in isolation.
➠ KPC projected FY revenue about KSh 41Bn and net profit about KSh 9.6Bn.
➠ Implied net margin around 24–25%, materially above most listed utilities.
➠ Strong margins and faster growth fundamentally separate KPC from KenGen and KPLC.

I decided to ignore the noise and throw some idle cash here. My thesis is to have hard assets in the portfolio.

Highly risky

I asked you a simple question @Mufasa.

Don't take advice from someone who is greatly benefiting from your actions which they are trying to influence! At the very least get a second opinion.

I have stress-tested my portfolio and it won't affect my balance sheet even if it drops to 1 bob.

106B is small money for hard assets, it does not even come close to the amounts we routinely subscribe for bonds.

You will buy from whom if they are no weak hands in the retail pool?

We wait for the secondary market

Here is a link...

Visit the link above and see what most brokers are saying.

High net worth investors are sitting out the KPC IPO!!!

Why is this information important?

High net worth investors have more access to information, analysis and analysts, experts/consultants etc. than the common mwananchi to guide them through investments decisions. If a majority of them are sutting this one out, then it should tell you something. A lot.

And these are not stories. 20% uptake by deadline is beyond dismal performance for the IPO!