@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.

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.

jitters, i am also skeptic about this, though i will be getting some small cash in it for speculative only

NANI AMEONA PROSPECTUS ATU LINK NAYO

@2012, I only quoted the above examples to share my thoughts regarding how perceptions have changed (for the worse) regarding equities in Kenya in general since 2008.

In my view you should not look at the 9/= price in isolation. There will be 650 million shares for the IPO - that's not exactly a small no. This is more than the entire listed shares of KNRE (600m) and about 6 times of PanAfric shares (96m after the bonus is credited). In addition indications are that current shareholders will be allowed to sell 49% of their current holdings which will potentially add another close to 750 million shares.

Of greater concern however is that BA has just come from a very good year in terms of performance and it was not in their core business hence almost no chance of replication. When H1 results are released, what do you think the reaction will be to a significant drop in earnings?

I believe that if the IPO is succesful, BA will become a very strong company. It will be the most capitalized insurance/investment company. The question is in order to maximize our gains at what point does one get in. Before or after the IPO? I am still inclined to participate in the IPO but ready to bolt immediately after listing and then get in later. Now, let's wait for the IM.

Delightful departure indeed

when we get into this discussion of getting either at the IPO or secondary market it's unproductive, it's the same thing that happened to KCB everyone expected a massive dilution and that explains its under subscription. If you are an investor you buy at the IPO for the long-term, the company needs your capital to expand, it's been run under good management so far, give your capital time to earn returns. If you are speculator just wait for it at the secondary market. Either way you will make your returns only issue is how long it takes

Are they re-ploughing the IPO funds ama? Yet to read/find the IM.