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Posted: November 27th, 2007, 2:04pm CST
First... SafCon stays true to its name... truth in advertising is unknown to them... Customer Service is unknown... more later...
Now to their Offer For Sale not an Initial Public Offering that would raise funds for the firm.
Rumours have been flying back & forth but the total value of the Offer could run from KShs 35 Billion to 60 Billion. In addition, a healthy chunk 20-35% may be reserved for "foreign" buyers.
I think it is UNFAIR to sell part of SafCon to foreign buyers while Kenyans will be starved. The mantra among the brokers is that Kenyans can't absorb 100% of SafCon. I say that is BULLSHIT.
Considering the over-subscription for other shares e.g. Kenya Re-insurance & KenGen shows the capacity is there. KenGen raised KShs 27bn vs KShs 8bn worth of shares offered for sale.
There will be an estimated 1,000,000 CDS accounts by 24 Dec 2007, elections be damned biashara iendelee, & an average application of KShs 35,000 means a 100% subscription rate.
* Hundreds of thousands of Kenyans are prepared for SafCon's OFS with at least 10,000/- to their name.
* Tens of thousands of Kenyans have the "average" of 35,000/-
* Thousands of Kenyans have more than 100,000/-
* Hundreds have 10,000,000/- or more.
* Add the Kenyan Unit Trusts, Insurance Firms, Banks, etc who have 10,000,000/- & more.
* Finally there are the E.African Investors who are treated as "locals". (Erm, unlike the Ugandans, the Tanzanians treat Kenyans as "foreign" investors, why do we allow them - Tanzanians - to participate as locals?)
Therefore, even if we had KShs 60bn worth of shares for sale... they would be sold, nay, over-subscribed if sold at the right "discount"!!!!
