Co-op bank is planning to do a rights issue to raise additional capital and to boost the statutory ratios.
According to the notice of the upcoming AGM they plan to increase the share capital from Ksh.3.7 billion made up of 3.7 billion shares to ksh.5 billion made up of 5billion shares through the creation of an additional 1.3 billion shares to rank pari passu with the existing shares

I meant in terms of share appreciation !

This is bad for the current shareholders in the short to medium run,DILUTION.

I like it an opportunity to pick cheap Coop shares.

Somebody please explain to me.....why is it that so many companies want to list/do rights issue this year & next year as opposed to a more certain 2013?

Coop now,CIC,British America,UAP etc

It is not a dilution as long as you defend your position by taking up ALL the rights allocated to you. If someone else picks up your rights then you are in a diluted position.

Dead wrong. Dilution is looked at as a percentage i.e ratios, not numbers. That is the basic difference between Accounts and Finance. In the statement above you have spoken like a true accountant, not a Finance man - investor. The effect of dilution on one share is the same as the one on a million shares.

Co-op is a great bank,6b from the ipo was wisely used to expand its branch network nd its bearing fruit,if a rights of ksh 10 were done that would be 13b which would greatly boost its investment muscle.

Good thing my name aint Many People coz even as of now i am ready to take up all my rights. Na ni kibao, vodka kando.