Rumour mill was working overtime about the oversubscription. I heard 20%, 80% & 100% but it turns out to be 400%! The 500% mentioned in the press INCLUDES the 100% shares available...
So Scangroup could have sold over 345 Million shares vs the 69 Million they have on offer!
Unfortunately, this means most applicants will get less than 10,000 shares & as low as 1,000 shares per applicant!
KenGen, a much larger offering, was only oversubscribed by 250%.
I expect the price to rise to 15/- as the corporate buyers (Mutual Funds, Insurance Companies, etc) try to buy on the secondary market BUT they are unlikely to pay "crazy" prices!
Well, whatever those idiotic MPs think (do they?), Kenyans voted with their wallets! Most banks were not even financing this IPO yet they had a 400% oversubscription.
Let the good times roll.
We need to have another large IPO to suck up the cash. Since Kenya Pipeline Corporation & Kenya Ports Authority are showing good profits, they would be great candidates. Further these firms can benefit substantially from the additional cash to expand their infrastructure!
This expansion would benefit Kenya by improving the movement of essential goods & services thus underpining the economic growth Kenya needs.
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- ScanGroup off to an explosive start in initial Tra...
- ScanGroup Announces 1H 2006 Results
- Bamburi - Friend or Foe?
- Scangroup IPO beats expectations!
- Kenya Airways & Kenya Times - World of Difference!...
- Private Firms going Public ? - The Contenders
- New Listings on NSE in 2006-7... Wishful thinking?...
- mukhisa kituyi's comments on EAPC & Ole Mapelu don...
- Kick Tanzania out of the EAC
- Merali Empire gets unfavourable review from Nation...
- Scangroup IPO massively oversubscribed!
- CEOs & Managers Resign in Protest of Government In...
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