Please note the proposal is NOT about an IPO but an OFS (Offer For Sale) where the shares sold are already issued thus none of the funds goes/benefits the firm being listed.
Scangroup was primarily an OFS with a small component as an IPO. Eveready was an OFS. Kengen was an OFS as was the second tranche of Mumias.
This is an amount that can & will be easily absorbed by Kenyans. Approx KShs 27 Billion was collected during KenGen's OFS. Most of it was refunded.
Safaricom's profits are primarily from Kenyan subscribers (who have been ripped off for ages!) thus:
- Kenyans should have the first RIGHT to buy shares
- If Kenyans can't buy them then offer to foreigners
- Multiple receiving banks e.g. all corporate applications handled by Barclays, QII (pensions, etc) handled by KCB and all individual applications handled by Equity
- The receiving bank opens an account with CBK for funds from the applications. These funds are used to lend funds to the "depleted" banks at the 30-day or 90-day T-Bill rate instead of the higher CBR (10%)
- Most banks have excess funds in T-Bills substantially above the required liquidity ratios. The CBK can allow for repos at favourable rates during this period.
Mutual Funds, Unit Trusts & Pensions can & will support the broader market as they snap up "cheap" shares that retail investors sell to buy Safaricom!
Foreign investors should buy Safaricom on the secondary market... that means Kenyans can make more money!
At the end of the day, market forces will prevail... so let them be!