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KOD
#1 Posted : Tuesday, July 05, 2011 1:00:41 AM
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Joined: 7/4/2011
Posts: 1
Location: NAIROBI
I am in possession of 5500 Class B CIC shares that I purchased for Kshs 110,000.00. Recently somebody offered me Kshs 50 per share which he later raised to Kshs 100 per share. Rumor has it that the shares will be divided twenty times during the IPO.
Question: Anybody know how much the share is worth and how many time the shares be split during the IPO?
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savant
#2 Posted : Tuesday, July 05, 2011 4:56:06 AM
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Joined: 4/1/2008
Posts: 104
Location: Nairobi
The class B shares, only account for about 6% CIC’s shares – why in the world would you want to sell out on such a rare opportunity?!

My advice; HOLD and BUY more if you can. This is why.....
Shares are to be split into 20. The IPO price is expected to be above Sh7. Assume we set this as the actual future price. Unless I’m mistaken, the math should add up like something like this;

5500*20 =110,000 shares (funny enough, you’ll be the proud owner of 110,000 shares instead of having just an original cost of Ksh110,000)

110,000 shares*Ksh7.00 =Ksh770,000 (this is pre-listing!..even before trading begins)

Opportunity cost of selling now Ksh220,000 {Ksh770,000 –(5500*Ksh100)}. Since the IPO is slotted for May (11 months from now), that averages to Ksh20,000 per month forgone just for selling out early. We haven’t even factored in the opportunity cost incurred in the first months of trading.

Don’t take just my word for it, here are some links that should help you understand your position better -
http://nairobilawmonthly...342&isId=8&ar=1
http://www.sbainteractive.com/news/ke/MTE0MDc=

Happy (and knowledgeable) Trading!
Généralement, les gens qui savant peu parlent becoup, et les gens qui savant beaucoup parlent peu.
- Rousseau.
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Hunderwear
#3 Posted : Tuesday, July 05, 2011 10:53:49 AM
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Joined: 4/14/2011
Posts: 639
Seconded the potential is stil very high.Btw Cic is among the few insuranc companies making a profit from its core busines i.e underwriting which is a very strong indicator of its health!Anyway the current mkt price is 90-100 and wont mind to buy them from you at that price!
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TUPAC
#4 Posted : Tuesday, July 05, 2011 11:19:00 AM
Rank: Member


Joined: 12/8/2009
Posts: 274
Location: Ltktk
savant wrote:
The class B shares, only account for about 6% CIC’s shares – why in the world would you want to sell out on such a rare opportunity?!

My advice; HOLD and BUY more if you can. This is why.....
Shares are to be split into 20. The IPO price is expected to be above Sh7. Assume we set this as the actual future price. Unless I’m mistaken, the math should add up like something like this;

5500*20 =110,000 shares (funny enough, you’ll be the proud owner of 110,000 shares instead of having just an original cost of Ksh110,000)

110,000 shares*Ksh7.00 =Ksh770,000 (this is pre-listing!..even before trading begins)

Opportunity cost of selling now Ksh220,000 {Ksh770,000 –(5500*Ksh100)}. Since the IPO is slotted for May (11 months from now), that averages to Ksh20,000 per month forgone just for selling out early. We haven’t even factored in the opportunity cost incurred in the first months of trading.

Don’t take just my word for it, here are some links that should help you understand your position better -
http://nairobilawmonthly...342&isId=8&ar=1
http://www.sbainteractive.com/news/ke/MTE0MDc=

Happy (and knowledgeable) Trading!

dont forget also the high possibility of a bonus issue before the ipo.
...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
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bartum
#5 Posted : Tuesday, July 05, 2011 3:42:57 PM
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Joined: 8/11/2010
Posts: 1,011
Location: nairobi
@TUPAC why do you there is a possibility of a bonus
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Hunderwear
#6 Posted : Tuesday, July 05, 2011 3:52:30 PM
Rank: Member


Joined: 4/14/2011
Posts: 639
TUPAC wrote:
savant wrote:
The class B shares, only account for about 6% CIC’s shares – why in the world would you want to sell out on such a rare opportunity?!

My advice; HOLD and BUY more if you can. This is why.....
Shares are to be split into 20. The IPO price is expected to be above Sh7. Assume we set this as the actual future price. Unless I’m mistaken, the math should add up like something like this;

5500*20 =110,000 shares (funny enough, you’ll be the proud owner of 110,000 shares instead of having just an original cost of Ksh110,000)

110,000 shares*Ksh7.00 =Ksh770,000 (this is pre-listing!..even before trading begins)

Opportunity cost of selling now Ksh220,000 {Ksh770,000 –(5500*Ksh100)}. Since the IPO is slotted for May (11 months from now), that averages to Ksh20,000 per month forgone just for selling out early. We haven’t even factored in the opportunity cost incurred in the first months of trading.

Don’t take just my word for it, here are some links that should help you understand your position better -
http://nairobilawmonthly...342&isId=8&ar=1
http://www.sbainteractive.com/news/ke/MTE0MDc=

Happy (and knowledgeable) Trading!

dont forget also the high possibility of a bonus issue before the ipo.

Bonus tena yawa?You guys are sweetening ths deal too much.cant get beta than this
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bird_man
#7 Posted : Wednesday, July 06, 2011 9:09:03 AM
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Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@TUPAC.....Where is a bonus mentioned in the Annual Report?Ama ilikuwa kwa AGM?
Formally employed people often live their employers' dream & forget about their own.
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TUPAC
#8 Posted : Wednesday, July 06, 2011 9:14:51 AM
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Joined: 12/8/2009
Posts: 274
Location: Ltktk
bird_man wrote:
@TUPAC.....Where is a bonus mentioned in the Annual Report?Ama ilikuwa kwa AGM?

its not mentioned but what will they do with the 90M new shares they created and approved in the AGM? will they do another rights issue? and how will they ensure that cooperatives maintain atleast 60 per cent?
...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
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bird_man
#9 Posted : Wednesday, July 06, 2011 11:11:30 AM
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Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
@TUPAC....just re-read the report & I think you could be right.
90Million new shares created but only 5.5Million allotted to over-subscription customers.Thus an extra 84.5 million shares.Could be a bonus there.

Also remember par value has to come down from 20/- to 1/- thus a split.

Questions:
(i)Which would be done first?Split or bonus (if any)?
(ii)If currently trading at 90sh-100sh, and a split of 20:1 is done, wont that mean price will be around 4.5sh-5sh?What if price rises again above say 7sh?Will IPO price be say 10sh or does it call for another split?
Formally employed people often live their employers' dream & forget about their own.
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Hunderwear
#10 Posted : Wednesday, July 06, 2011 11:31:36 AM
Rank: Member


Joined: 4/14/2011
Posts: 639
bird_man wrote:
@TUPAC....just re-read the report & I think you could be right.
90Million new shares created but only 5.5Million allotted to over-subscription customers.Thus an extra 84.5 million shares.Could be a bonus there.

Also remember par value has to come down from 20/- to 1/- thus a split.

Questions:
(i)Which would be done first?Split or bonus (if any)?
(ii)If currently trading at 90sh-100sh, and a split of 20:1 is done, wont that mean price will be around 4.5sh-5sh?What if price rises again above say 7sh?Will IPO price be say 10sh or does it call for another split?

a)me thnks the split comes first.why?becavse the necessary approval are already gven for split whle bonus would requir an AGM/EGM. b)post-split 4-5 shillings so if they issue 1:1 bonus the price comes to 2-2.5(be4 factoring in any price gains)
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themover
#11 Posted : Friday, March 09, 2012 2:47:57 PM
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Joined: 2/24/2012
Posts: 7
The certificate surrender almost over as instructed by the CIC, does anyone have a clue of what next?
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jerry
#12 Posted : Friday, March 09, 2012 3:33:15 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
themover wrote:
The certificate surrender almost over as instructed by the CIC, does anyone have a clue of what next?

@theMover. 2 wks to be specific. Let's wait.
The opposite of courage is not cowardice, it's conformity.
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njokishk
#13 Posted : Friday, March 09, 2012 4:00:11 PM
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Joined: 6/13/2011
Posts: 63
Location: njokishk
I want to buy ooh i don't want to left out, someone willing to sell to me some? contact njokish04@yahoo.com
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