wazua Wed, Mar 25, 2026
Welcome Guest Search | Active Topics | Log In

17 Pages123>»
KCB rights issue
Options
Previous Topic · Next Topic
B.Timer
#1 Posted : Tuesday, April 13, 2010 2:19:36 PM
Rank: Veteran

Joined: 5/31/2008
Posts: 1,076

Directors proposing a rights issue of 1.1Bn shares.
Massive if you ask me.
Dunia ni msongamano..
Back to top
  |
guru267
#2 Posted : Tuesday, April 13, 2010 2:44:49 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
where did you hear this?? provide a link if possible...
Mark 12:29
Deuteronomy 4:16
Back to top
  |
mdosi
#3 Posted : Tuesday, April 13, 2010 2:52:12 PM
Rank: Member

Joined: 2/1/2007
Posts: 112
Location: Nairobi
These guys did a rights issue in 2008 and they want to do another one? If they are allowed to do it, the dilution of the share price will keep the share suppressed at current levels or lower. I hope CMA declines their request.
It's amazing what you can achieve when you get rid of fear.
Back to top
  |
B.Timer
#4 Posted : Tuesday, April 13, 2010 3:06:59 PM
Rank: Veteran

Joined: 5/31/2008
Posts: 1,076
@guru267

In compliance with NSE rules for listed Companies, the KCB minders so advised NSE.
I've a copy in PDF format that I am unable to post here.
There will be an AGM on May 2nd in which they hope to endorse this amongst other proposals.
Dunia ni msongamano..
Back to top
  |
cnn
#5 Posted : Tuesday, April 13, 2010 3:13:16 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
Currently has 2.2 billion shares,that will 50% dilution and more for anybody not able to pay for their rights.A bad joke this one.If they need such massive cash the bond market is awash with liquidity.
Back to top
  |
guru267
#6 Posted : Tuesday, April 13, 2010 3:21:19 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@cnn they cant use the bond market because it has coupon rates and a rights issue is interest free plus investors are willing to pay for them...

@B.Timer do they plan to raise the whole 15billion from the rights issue??? hence a the rights priced at 13.6bob

Mark 12:29
Deuteronomy 4:16
Back to top
  |
stock.enigma
#7 Posted : Tuesday, April 13, 2010 3:21:57 PM
Rank: Member

Joined: 8/14/2009
Posts: 244
@B.Timer, can you shade more light on this. Only two tears ago we had rights at ksh25. The share has since been tading below.
Back to top
  |
cnn
#8 Posted : Tuesday, April 13, 2010 3:45:15 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
@guru,if i remember correctly,BBK did float a bond some 2-3 years ago,so its a way KCB may use.I agree on the intrest free aspect of a rights issue but the dilution?
Back to top
  |
mdosi
#9 Posted : Tuesday, April 13, 2010 3:49:48 PM
Rank: Member

Joined: 2/1/2007
Posts: 112
Location: Nairobi
I think it's better to exit and buy back later because the price will definitely plummet. I did so in 2008 where i exited @33 bob and came back at an average of 21 bob.
It's amazing what you can achieve when you get rid of fear.
Back to top
  |
B.Timer
#10 Posted : Tuesday, April 13, 2010 3:51:00 PM
Rank: Veteran

Joined: 5/31/2008
Posts: 1,076
Currently KCB has 2.4 Bn ordinary shares at the bourse.
They intent to create a further 1.1Bn ordinary shares to be offered to the existing shareholders at a discount, but once uploaded they will rank pari pasu with the existing shares.

The rights rate is yet to be determined as per their communication to NSE.
At the end otf the exercise KCB will have a whooping 3.5Bn ordinary shares shoving for space in the NSE.
Dunia ni msongamano..
Back to top
  | | Edit by user: Tuesday, April 13, 2010 3:52 PM | Reason: Not specified
17 Pages123>»
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.