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buying CIC at kes 38
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PKoli
#11 Posted : Tuesday, August 17, 2010 4:49:11 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
bartum wrote:
will this 20M new shares be issued as rights or to be sold to the public at kes 20


I think from statement number the rights might be given to shareholders and new shares to the public. That is what I can decipher from the statement, but details should be out soon.
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bartum
#12 Posted : Tuesday, August 17, 2010 5:00:13 PM
Rank: Veteran

Joined: 8/11/2010
Posts: 1,011
Location: nairobi
oooh the new shares will so at ksh.20 at existing shareholders and at a price to be decided to non members. I have to buy atleast a small number say 100 shares from a innocent dude to be eligible to buy at ksh 20 bob.
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PKoli
#13 Posted : Tuesday, August 17, 2010 5:03:19 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
bartum wrote:
oooh the new shares will so at ksh.20 at existing shareholders and at a price to be decided to non members. I have to buy atleast a small number say 100 shares from a innocent dude to be eligible to buy at ksh 20 bob.


The statement is not very clear, we may just wait till proper announcement is made. The minimum shares that you can purchase is 500
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bartum
#14 Posted : Tuesday, August 17, 2010 10:52:52 PM
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Location: nairobi
after factoring in the additional 20M shares what will be the new PE.
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PKoli
#15 Posted : Tuesday, August 17, 2010 11:58:24 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
PKoli wrote:
This might have eluded us today. I never read the paper in the morning and so missed out. I have been wondering why CiC has been alot of marketing lately. From posters to newspapers, they have been having fantastic marketing. I now know why;

In today's papers, they have announced an EGM on September 17th to discuss among other issues:

1. Demerger of life and general business
2. Change of name and conversion
3. Increase of share capital..That the authorised share capital of the company be increased from KES 600M to KES 1000M divided into 50M shares of KES 20 each by creation of 20M ordinary shares of KES 20.
4. That the Board be hereby authorised to issue and allot the unissued share capital of the Company to the existing Class B shareholders and to new shareholders at such a price and such terms as they deem most beneficial to the Company.

Sorry I was not reading online, could have provided the link.

So pals, there you are for those of you who have been eyeing the share, here is the opportunity.

Any thoughts?




I forgot to add one resolution that the company be converted into a public company
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e_kijana
#16 Posted : Tuesday, August 17, 2010 11:59:52 PM
Rank: Member

Joined: 1/17/2009
Posts: 55
Very straightforward... they are looking for an approval for listing without saying it...

They are asking to allot the unissued share capital to existing class B shareholders or new shareholders "at terms they deem most beneficial to the company".

Simple math - they currently have around 3.5million class B shareholders out of a possible 23 million shares... so it CANNOT be a rights issue for 20 million shares else it would be undersubscribed (each 1 share will need to take up 6 additional at a new price!!!).

The rider here is they want to include new class B shareholders... so the general public... and in case you didn’t miss it, one of the other resolutions is to be a public company.
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PKoli
#17 Posted : Wednesday, August 18, 2010 12:02:55 AM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
bartum wrote:
after factoring in the additional 20M shares what will be the new PE.


It will have eps (diluted) of about 6 so if it will trade at say 30, it will have a pe of 5. Dynamics will change when they release half year results. That should dictate price which it will trade at. I expect a slightly higher pe since it will be a public company, and being a growth stock it should have a pe of about 10 (most insurance stocks trade at a fairly low pe)
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hisah
#18 Posted : Wednesday, August 18, 2010 12:09:14 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
This will be very few shares (20M) for the class B shareholders and most will likely to be gobbled up by the class A members (Saccos). Rumour has it that the listing might be in 2012 - 2013. But the move to capitalize the share-holding to Ksh 1B and break up life and general insurance biz is smart just like CFC smile
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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PKoli
#19 Posted : Wednesday, August 18, 2010 12:12:57 AM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
e_kijana wrote:
Very straightforward... they are looking for an approval for listing without saying it...

They are asking to allot the unissued share capital to existing class B shareholders or new shareholders "at terms they deem most beneficial to the company".

Simple math - they currently have around 3.5million class B shareholders out of a possible 23 million shares... so it CANNOT be a rights issue for 20 million shares else it would be undersubscribed (each 1 share will need to take up 6 additional at a new price!!!).

The rider here is they want to include new class B shareholders... so the general public... and in case you didn’t miss it, one of the other resolutions is to be a public company.



E-kijana, I think you are almost spot on. Just note that they said ...to allot the unissued share capital to existing class B shareholders AND (not or) new shareholders..Implying a portion might be given to existing shareholders at a discount, the rest to other public members at a discount..That is my interpretation.
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PKoli
#20 Posted : Wednesday, August 18, 2010 12:18:24 AM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
hisah wrote:
This will be very few shares (20M) for the class B shareholders and most will likely to be gobbled up by the class A members (Saccos). Rumour has it that the listing might be in 2012 - 2013. But the move to capitalize the share-holding to Ksh 1B and break up life and general insurance biz is smart just like CFC smile


Like e_kijana has pointed out, class B shareholders are very few. In any case, the shares are not being offered to class A shareholders. What I do not understand is the word "public" as used in this context. Does it mean non cooperative members?

I would imagine listing could come as early as next year.
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