Well, after all the second-guessing, discussions & criticisms of ScanGroup's IPO, the most galling being the idiotic remarks & questions made by some MPs, apparently Kenyans voted with their wallets!
Over 3.5 Million shares were traded in 2 days!
Aug 29 2006 - 3,056,000 (avg price 15.00)
Aug 30 2006 - 450,000 (avg price 16.35)
And that also make Bharat Thakrar a bonafide Billionaire between the cash proceeds & shares he owns in ScanGroup! SG's market cap is approx 2.8 Billion.
Well... now its time for the next IPO coz there is KSh 3.8 Billion in refunds! In perspective, the refund (KShs 3.8 Billion) exceeds the market cap (KShs 2.8 Billion) of ScanGroup!
My gut feeling is that the number of shareholders will drop rapidly from the 96,000 level to less than 75,000 in time for the first AGM to be held mid-year 2007! I expect many current shareholders will sell their meager allocations (300-500) & the buyers are either High Net Worth individuals, Unit Trusts & Retirement Funds.
It is difficult to judge the direction of the price but early indications point to an initial steady increase in the price as supply gradually reduces. Of course, I expect supplies to increase during the Xmas season with a subsequent drop in price.
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- ScanGroup Announces 1H 2006 Results
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