@$PT, am with you #spectator ionssmile

Notice the 405,255,320 shares being listed have a net book value (including goodwill) of KES 0.91 and a net book value (excluding goodwill) of KES 0.73. ... Home Afrika will be ripping off wanjiku if the introduction price is not below 1bob!!

At a net income of Ksh 167.7M for 2012 and a Book Value of Ksh 8.5B (which i assume will be the basis of determination of listing price); its return on equity = net income/shareholders equity is a depressing 1.97%.

Compare this with the ROE of Trans Century at 15.1% (P/B of 1.8); Centum at 18.4% (P/B of 1.0); Housing Finance at 15.0% (P/B of 1.1).

At such a low ROE, which is about an eighth of its peers,i would price the share at a tenth of Ksh 21 hence a price of Ksh 2.00.

The price of Ksh 2.00 would mean a P/E of 4.30 which would be comparable to HFCK (p/e 7.5); Centum (p/e 5.6), trancentury (p/e of 12) all of which have better investor returns.

Based on the 2011 results which were a loss position, i think i'll stay out of this one unless their is a significant discount on the Ksh 2.00.

The original owners are really dumping this thing!

I have capacity to hold out until 8bob average!

I bought. 1000 units of HAFR at 8.00, Now Its at sh.7.20.....I QUIT....

The final wait for 5 bob begins... I hope people are not getting too burnt! As long as you keep the losses on paper you should weather the storm depending on where your average lies...