wazua Sat, Mar 21, 2026
Welcome Guest Search | Active Topics | Log In

75 Pages«<3839404142>»
Kenya airways Right Issue
Options
Previous Topic · Next Topic
guru267
#391 Posted : Saturday, June 09, 2012 11:37:57 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Sufficiently Philanga....thropic wrote:
Chewing a composure at stage 7Drool
really cold out hered'oh! but it wont be longPray and i'll be homesmile


Laughing out loudly stage 7 is uko ndaaani... i.hope we get to pick you up after i board @ stage 9 smile
Mark 12:29
Deuteronomy 4:16
Back to top
  | | Edit by user: Saturday, June 09, 2012 11:40 PM | Reason: Not specified
guru267
#392 Posted : Saturday, June 09, 2012 11:54:42 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.


This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Mark 12:29
Deuteronomy 4:16
Back to top
  |
VituVingiSana
#393 Posted : Sunday, June 10, 2012 6:49:34 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.

This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
guru267
#394 Posted : Sunday, June 10, 2012 8:25:51 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.

This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.


I thought KLM + GOK + IFC + CITI = 70%.

Doesnt this mean that no local individual or institutions or foreigners touched this rights issue.. These are the same guys who will drive the price below 10bob
Mark 12:29
Deuteronomy 4:16
Back to top
  |
VituVingiSana
#395 Posted : Sunday, June 10, 2012 11:21:34 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
guru267 wrote:
VituVingiSana wrote:
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.

This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.


I thought KLM + GOK + IFC + CITI = 70%.

Doesnt this mean that no local individual or institutions or foreigners touched this rights issue.. These are the same guys who will drive the price below 10bob
Citibank had underwritten only 2% & did not need to take it up if they got 2% foreign investors which they did via IFC. Also KLM's % application/allocation was reduced to keep Kenyan control at 50%
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
Sufficiently Philanga....thropic
#396 Posted : Sunday, June 10, 2012 1:49:14 PM
Rank: Elder

Joined: 9/23/2010
Posts: 2,225
Location: Sundowner,Amboseli
guru267 wrote:
Sufficiently Philanga....thropic wrote:
Chewing a composure at stage 7Drool
really cold out hered'oh! but it wont be longPray and i'll be homesmile


Laughing out loudly stage 7 is uko ndaaani... i.hope we get to pick you up after i board @ stage 9 smile

@SufficientlyP
Back to top
  |
mwekez@ji
#397 Posted : Sunday, June 10, 2012 11:15:03 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
VituVingiSana wrote:
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.


What informs the highlighted conclusion
Back to top
  |
mwekez@ji
#398 Posted : Sunday, June 10, 2012 11:24:00 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
VituVingiSana wrote:
guru267 wrote:


I thought KLM + GOK + IFC + CITI = 70%.

Doesnt this mean that no local individual or institutions or foreigners touched this rights issue.. These are the same guys who will drive the price below 10bob
Citibank had underwritten only 2% & did not need to take it up if they got 2% foreign investors which they did via IFC. Also KLM's % application/allocation was reduced to keep Kenyan control at 50%


That underwriting agreement presented a win for Citi.

Those who took the rights are:


GOK - 23%
KLM - 19%
Other existing shareholders - 18%
IFC - 10%

Total 70%
Back to top
  |
mwekez@ji
#399 Posted : Sunday, June 10, 2012 11:30:47 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Kenya Airways will not scale down debt plan, says director

Kenya Airways has said that it will not scale down its massive borrowing plan despite the under-subscription of its rights issue which recorded a 70 per cent uptake level.

The rights issue was meant to raise additional capital for financing KQ’s expansion plans, as well as address its debt-capital ratios.

The airline’s group finance director, Alex Mbugua, however, said borrowing projections will not be scaled back since the rights issue had hit the 70 per cent target, which will allow a “comfortable” debt to equity mix.

Mr Mbugua also said that the firm “would not adopt a conservative dividend policy.

http://www.businessdailyafrica....6/-/w4xyjcz/-/index.html
Back to top
  |
Aguytrying
#400 Posted : Monday, June 11, 2012 11:11:10 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.


This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!


For the company is bad for dilution its a relief.
Lets wait for the results this wed. Mine was just a best case scenario estimate which was on the optimistic i must admit
The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top
  |
75 Pages«<3839404142>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.