According to the
Business Daily the Safaricom IPO will be @ Kes: 5.00 per share with a staggering 15Bn shares on offer yes, 15,000,000,000 shares on offer.
This values the company at Kes: 200.00Bn and the offer could rake in as much as Kes:75.00 Bn. With the shares having a Kes:0.50 par value.
Minimum allocation is 1,000 shares at a cost of Kes:5,000.00
Though this is not confirmed and is from their sources, this approach is welcome and will favour the man on the street.
Another key note is that for foreign investors, prices will be determined via book building which is like an auction with the lowest target being the offer price.
Another development is that Stockbrokers want this IPO postponed and are against the book building approach for foreign investors with their suggestion being the use of a fixed premium price above what retail guys pay. On
Standard and
Nation.
I fully support that foreign investors should pay a premium up and above what we pay for. Its taxpayer’s money that built Safaricom and thus taxpayers should be prioritized and the IPO should be tailored to their wallet.
Local Institutional and corporate investors should as well pay a premium for the guarantee they get in preferred allocation and the fact that they only pay after allocation and thus the need to entice retail investors for the cost of holding money for a prolonged period only to be allocated a meager amount of shares.
The split to get to 15Bn shares is very welcome so that there is enough cake for all of us to share and particularly reduce the need for refunds.
I am also in the school of thought that local Kenyan individuals should have around 50% of this issue set aside for them, because there is enough capacity for us to accommodate the issue with the rest being skewed towards local institutions.
But if this materializes as reported, then Safaricom will pay dearly for AGM’s, to host over 1 Million shareholders and also for the cost of dividend payments and distribution of financial reports.
Previous
posts on this topic .
On a different note:
> Another Kenyan emerges as the winner of the alternative Nobel Prize and raked in some $ 77,000.
Read more.
> Transcentury have also postponed their private placement reporting fear that investors might link their findraising efforts with their political affiliations.
Notably is that some of the founding members are strongly aligned to political activity during this election period.
