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BRITAK IPO: The Money Maker
Rank: Elder Joined: 6/2/2008 Posts: 1,438
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@the deal, One other question for you.
The Equity Bank share price rose substantially between Jun-30-09 & Jun-30-10. Given this scenario, most of the gains on FVTPL on quoted financial instruments for 2010 arose in the first half of 2010.
The change in price for Equity Bank between 30-06-10 to 30-06-11 is a lot smaller meaning that the gains in H1 2011 will be somewhat miniscule. Of course given what you say about BA having reduced their stake in Equity, there will be some satisfaction in that there will be realised (and not just paper) gains.
Nonetheless, did Mgt give you any indication that they had found a way to limit the scale of the drop in investment income. Or, as Stocksmaster says is an earnings famine on the cards starting this half year?
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Rank: Elder Joined: 6/23/2009 Posts: 14,477 Location: nairobi
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@guru. with time i have come to immensely respect your decisions. should we buy this thing. COOP 306,100 ABP 31.96, KEGN 112,100 ABP 10.64, MTNU 131,000 ABP 10.21
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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mwanahisa wrote:@the deal, One other question for you.
The Equity Bank share price rose substantially between Jun-30-09 & Jun-30-10. Given this scenario, most of the gains on FVTPL on quoted financial instruments for 2010 arose in the first half of 2010.
The change in price for Equity Bank between 30-06-10 to 30-06-11 is a lot smaller meaning that the gains in H1 2011 will be somewhat miniscule. Of course given what you say about BA having reduced their stake in Equity, there will be some satisfaction in that there will be realised (and not just paper) gains.
Nonetheless, did Mgt give you any indication that they had found a way to limit the scale of the drop in investment income. Or, as Stocksmaster says is an earnings famine on the cards starting this half year? None apart from going into real estate,regional expansion and opening more branches...the 2H will be good cos they finished a development in the 1H which theyre going to sell in the 2H.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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If I'm not wrong, according to a Business Daily last week the sahreprice will be at 9/- and they're looking to raise 5B meaning about 550M shares will be on offer, is that right? If that is so then I think they will be massively oversubscribed.
BBI will solve it :)
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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2012 wrote:If I'm not wrong, according to a Business Daily last week the sahreprice will be at 9/- and they're looking to raise 5B meaning about 550M shares will be on offer, is that right?
If that is so then I think they will be massively oversubscribed. I am afraid that you are wrong. The MD was interviewed on CNBC last week and he indicated that the IPO was for 650 million shares and they were seeking to raise 5.85 B. BTW, what makes you think that this IPO will be MASSIVELY oversubscribed. Remember except for the KPLC rights issue which just squeaked through, both CoopBank and the KCB rights issue were not fully taken up.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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This morning, there was this analyst from Drummond, who when asked whether he would be buying into the BA IPO came straight out and stated bluntly he would rather wait for it on the secondary market. This is very unlike a broker who invariably ALWAYS have BUY recommendations.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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jitters, i am also skeptic about this, though i will be getting some small cash in it for speculative only LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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mwanahisa wrote:[quote=2012]Remember except for the KPLC rights issue which just squeaked through, both CoopBank and the KCB rights issue were not fully taken up. KPLC and KCB were rights. In my views an IPO is different because unlike rights where the current trading price is a big factor in setting the issue price and KCB's mistake was not clearly articulating what they needed the cash for otherwise as you can now see it is a strong counter and has withered that storm. At 9/- I honestly can't see it going south, I can't see anything that would drive it south fundamentally not even the current inflation, do you?
BBI will solve it :)
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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NANI AMEONA PROSPECTUS ATU LINK NAYO
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Rank: Veteran Joined: 11/30/2006 Posts: 635
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mwanahisa wrote:This morning, there was this analyst from Drummond, who when asked whether he would be buying into the BA IPO came straight out and stated bluntly he would rather wait for it on the secondary market. This is very unlike a broker who invariably ALWAYS have BUY recommendations. was this analyst speaking to the press?
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