Yenyewe hata mimi hiyo pun nimeitafuta!!

Ali khan satchu is always bullish on safcom even when its playing against him so for now i can become his friend and get some relieve

@mbanianimbaya what are you trying to say infront of your father,mother,brother,sister e.t.c?..keep some for yourself pls

mukiha.....

"SCOM has NEVER sold shares to the public!!

Therefore SCOM cannot buy them back!!

GoK is the one you should be talking about...it was the one that sold shares during the IPO..

If that were to happen, the balance sheet of SCOM would not change an inch!![/quote]

MR MUKIHA..
It is Safaricom shares trading, its not GOK shares, get this right what is trading is Safcom equity however you wanna look at it.

Also Safcom did sold shares to the public to raise Capital, that capital was used to pay the GOK out of the company.

Therefore Safcom can buy back its shares but does it have money to do so? Probably not, why? strategically Safcom is a growing company, if Safcom decide to use all its retain earnings to buy back stocks, the company will have shift from its strategy at a crucial phase in the industrial cycle and could lead to lose of market share and profitability. Do you think Safcom wanted to go public? of course not, no company want to go public coz equity financing is more costly than debt financing. Did they have a choice? NO, the GOK wanted out, its owned 60% of equity and the 40% was owned by the parent company, so if the parent company had a debt:equity of 2:3, Safaricom before IPO had appx 16% of debt finance and needed additional 60% of debt to avoid IPO thats a total debt of 76%.... you see impossible no bank will offer you any loan with that debt: equity so the only option was IPO.

What? Wazuans are still discussing this non-issue?
Get a life people... there are bigger things out there...
- KPLC announces superb results
- MoE capitulates to KK
- KQ's AGM

Non-sense stock,even those who bought it at 4.60 have joined our loss making club...conning stock

And what makes u think the price will stick there for ever? Usiogope...nunua bwana. Do u know at what price EXACTLY safaricom should be priced? Mimi sijui... but am confident that the price will go back to 5 soon..I bought on Friday na on Monday I will place a BUY order ..then when I sell i will also let u know. I am not an expert but this is the way I trade and I make money..kidogo kidogo...

@kyukkamba you will start making losses kidogo kidogo....

it seems we have a more fundamental lack of understanding than the one about 20 cents dividends..

@Capital.. geek..

You are wrong, it was the Govt that sold its shares.. Safaricom did not sell shares to the public. I refer you to the Safaricom IPO prospectus whose first paragraph was
"Prospectus in respect of an offer for sale by the Government of Kenya of 10,000,000,000 shares with a par value of Kenya Shillings Five Cents (KShs 0.05)each in the ordinary share capital of Safaricom (the Offer Shares ) comprising a public offer of 25% of the issued ordinary Safaricom shares (the Offer )"

But what exactly constitutes a share repurchase.. Can Safaricom repurchase shares in the market. I think it can, after all the Govt was just a shareholder just like the public now is..

Should it repurchase.. hell no! No benefits at all to repurchasing.. If you're looking for delisting, then speak to Vodaphone, maybe if they repurchase enough of the public shares, it maybe delisted. Does it make business sense for them to?? I doubt it..

And now, Zain has dropped international call rates to USA, India, Canada, and China to 3shs / minute.. Permanent, of course!
For now, i will watch Safcom from the sidelines. It should remain profitable, but my money is on EABL to regain the crown of 'most profitable company'!