In his book 'Rich Dad's Guide to investing',Robert Kiyosaki says the best way to make money is by being the selling investor during an IPO.This is evident in the Kenyan scenario where all IPOs turned the selling shareholders into billionaire on listing.SCANGROUP,EQUITY,COOP.
History is not always the yardstick to the future but tends to repeat itself.There are many good companies out there that are listing within the next three or so years and are currently grossly undervalued ie selling below their book value or even their par value.
In the spirit of Wazua lets share our views on this and the companies to look at.I had in mind CIC at PP price of 27 but it has since gone to 90.



Much appreciated.

muramati sacco?

The beauty of these is the ability to buy as much as you want at a cheap price sometimes even allowing you to pay in installments.By the way the price remains the same for so long as the amount intended is not met.There after you can actually bargain the price with the seller OTC.I understand saccos can still acquire more CIC at 27 even now(stand to be corrected).
@ycsun as you say the CIC value is almost unlocked as of now and in less than than an year you have 330% return.and this is no an exception.
@Jerry and pondi,Muramati is a very robust sacco with a dividend of 9-10 % and in the areas it exists in central is prefered to Equity and family Banks esp. by tea farmers.Am not sure when/if they list and if they convert into a bank.Its worth a look.For family bank they aimed to list in 2009 but postponed due to delay by CBK to issue them Banking Licence.Last year they sold 25% to Afica Invest at par value(2) with a lock in period of 5 yrs.Its currently on an OTC operated by Family bank and the price as at around march 2011 was 22-26.You need to have these shares to be allowed to buy.
Am not sure of the following but may fit here:
I&M bank
Kenya school of professional studies
Deacons
Anybody who can do a background check on this ones please.If possible get us the market value and their availability at that,net book value and their dividend yield.

@Tupac meaning it's now available OTC?

what about banks like prime bank, fina, gulf and all these other small banks and institutions? when could they list or offer private placements? anybody?

There are alot of insurance firms out there which are better than CIC...those are the goldmines but in Kenya i will never invest in a private company unless its mine too much risky.

I am not so sure of any other gem than CIC...There are others like Real, Investeq, Inoorero University, Transcentury. I once contemplated buying into Trans, lakini nikang'ethia.

The irrational exuberance of making money from private placements and angel funds should always be tempered by rational logic and research.

The question should be how do you get to hear, participate and take advantage of private placements.
My first port of call is always investment banking outfits. They are the go between the companies that are trying to raise money and the investors with money to invest.
Good luck and happy hunting!

Private Companies are not in the Market so its much harder to get research info... plus they have less stringent Financial Reporting requirements... much easier for accountants to get creative... especially if they have a good reason, like a placement... chunga sana!

Still, the downside is limited by my investment, the upside is unlimited... if it feels good after homework, I say its worth the risk.

Aint sure about wananchi but as for Family bank the last time i checked was going for 24 and thought its expensive given its unlisted.The supply was also very high but that was then.How is it doing lately?