In April 2011 I acquired 10,000 units of Stanbic Uganda shares. Factor in 1 Ksh = 29 Ugx
In November 2011, 1 to 1 bonus issue was applied my units increased to 20,000 units
In July 2012 Stanbic issued another 4 for 1 script (bonus) issue so my units baloons to 80,000 Units,
Notwitstanding that the value of my investment has not really changed, I am wondering
Why did stanbic Uganda decide to capitalize from their reserve instead of rights issue, public offer or combination of both which I reckon is cheaper?
I understand stanbic is trying to meet up the capitalization requirement of Uganda regulatory authority
With this dilusion stanbic is worth a paltry 25 ugx per share which is like 0.94 Ksh per share.
The number of shares on issue by stanbic is now 50 billion shares which "outperforms" Safaricom of
kenya in terms of issued shares.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .