Wazua
»
Investor
»
Stocks
»
Advice: CMA approves NIC Bank’s Sh2 billion Rights Issue .
Rank: Member Joined: 11/6/2010 Posts: 289
|
The Capital Markets Authority has given its approval to NIC Bank’s Sh2.07 billion Rights Issue. The bank will issue 98,724,391 rights to purchase new ordinary shares at an offer price of Sh21 per share.
i mean do i take up the rights or sell the shares i hold currently??
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
gesowan wrote:The Capital Markets Authority has given its approval to NIC Bank’s Sh2.07 billion Rights Issue. The bank will issue 98,724,391 rights to purchase new ordinary shares at an offer price of Sh21 per share.
i mean do i take up the rights or sell the shares i hold currently?? Do both. Sell the shares that you have now, remaining with 100 shares. Apply for additional rights at 21. Life is short. Live passionately.
|
|
|
Rank: Member Joined: 11/6/2010 Posts: 289
|
thanks alot
i need to disable this thread....
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
Don't be in a rush...what if everybody takes up their rights and there are no leftovers for guys like you? Look @ the DTB rights issue...
|
|
|
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
|
sparkly wrote:Do both. Sell the shares that you have now, remaining with 100 shares. Apply for additional rights at 21. This is the most dangerous advice for any rights issue that will be surely oversubscribed.. This move would only work for ambitious or poorly valued rights issues eg. KPLC(ambitious) , KCB(ambitious) , KQ(poorly valued).. This move completely failed in the Stanchart issue and all previous DTB rights issues due to generous valuations and tiny capital reqirements.. The NIC and DTB issues will be highly oversubscribed so if you remain with 100 shares do not expect more than 25 additional shares from NIC.. My strategy would be to sell all my shares in NIC and buy ex rights below 30.. Then when the rights begin trading scoop them up at 25-27bob..
Less ambitious but more realistic!! Mark 12:29
Deuteronomy 4:16
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
What if you sell half ur shares. Then take up rights of remaining shares . Apply for additional shares with the left over money. If u dont get all. Buy more from the market ex rights. This way u wont risk not getting rights shares and you are guaranteed to increase the no. Of shares u initially had and you will invest all the capital back to nice. And your overall price will be much lower. The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
|
My strategy would be to sell all my shares in NIC and buy
ex rights below 30.. Then when the rights begin trading
scoop them up at 25-27bob..
Less ambitious but more realistic!!
@guru why buy at 30 and come again later and buy at betw 25-27. Just wait and buy at 25.50
|
|
|
Rank: Elder Joined: 11/7/2007 Posts: 2,182
|
thats a sane strategy right there. AGUY LOVE WHAT YOU DO, DO WHAT YOU LOVE.
|
|
|
Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
|
At that discount i'm all set to throw my uchumi capital gains into the NIC rights. I like the management, the business plan and I trust the Ndegwa family their firms are well managed and stable. This is the only bank I have bought at almost book value, my two cents take up the rights and be patient just like KCB
|
|
|
Rank: Member Joined: 4/2/2011 Posts: 629 Location: Nai
|
mkonomtupu wrote:At that discount i'm all set to throw my uchumi capital gains into the NIC rights. I like the management, the business plan and I trust the Ndegwa family their firms are well managed and stable. This is the only bank I have bought at almost book value, my two cents take up the rights and be patient just like KCB I was very pleased when they appointed Joseph Mutugu as the finance director http://www.nic-bank.com/about/management/.
Man going places for a bank going places
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
guru267 wrote:sparkly wrote:Do both. Sell the shares that you have now, remaining with 100 shares. Apply for additional rights at 21. This is the most dangerous advice for any rights issue that will be surely oversubscribed.. This move would only work for ambitious or poorly valued rights issues eg. KPLC(ambitious) , KCB(ambitious) , KQ(poorly valued).. This move completely failed in the Stanchart issue and all previous DTB rights issues due to generous valuations and tiny capital reqirements.. The NIC and DTB issues will be highly oversubscribed so if you remain with 100 shares do not expect more than 25 additional shares from NIC.. My strategy would be to sell all my shares in NIC and buy ex rights below 30.. Then when the rights begin trading scoop them up at 25-27bob..
Less ambitious but more realistic!! @guru i don't see the difference between your strategy and mine. If i fail to get an extra allocation at 21, i will just buy the shares when the rights start trading. Either way, if NIC hits 40 CR i will sell whatever i have, remaining with 100 and apply for additional rights. Upside from 40 IMO is 15% or thereabouts. Life is short. Live passionately.
|
|
|
Rank: Member Joined: 11/6/2010 Posts: 289
|
@sparkly it has hit 40 and heading north have u sold??
|
|
|
Rank: Elder Joined: 7/21/2010 Posts: 6,184 Location: nairobi
|
Books close.may dip today. "Don't let the fear of losing be greater than the excitement of winning."
|
|
|
Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
|
accelriskconsult wrote:mkonomtupu wrote:At that discount i'm all set to throw my uchumi capital gains into the NIC rights. I like the management, the business plan and I trust the Ndegwa family their firms are well managed and stable. This is the only bank I have bought at almost book value, my two cents take up the rights and be patient just like KCB I was very pleased when they appointed Joseph Mutugu as the finance director http://www.nic-bank.com/about/management/.
Man going places for a bank going places I have worked with 4 guys in that squad and i fully trust them and they have come along way with the Ndegwe boys. I know not many know that the boys worked for sometime at Citibank when dad was Governor. Strong financial management foundation. Thieves
|
|
|
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
|
sparkly wrote:@guru i don't see the difference between your strategy and mine. If i fail to get an extra allocation at 21, i will just buy the shares when the rights start trading.
Either way, if NIC hits 40 CR i will sell whatever i have, remaining with 100 and apply for additional rights ... @sparkly how will you know how many rights yout have been allocated before the official announcement?? I repeat that NO INVESTOR will receive any additional rights whatsoever on the current NIC rights issue!! Mark 12:29
Deuteronomy 4:16
|
|
|
Rank: Member Joined: 11/6/2010 Posts: 289
|
how is the uptake of the rights ?
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
@gesowan, relax. rights issue will open on 27th August.
|
|
|
Rank: Member Joined: 11/6/2010 Posts: 289
|
@youcantstopusnow,
what my bird told me is that you will definately get ur entitled shares meaning if u had 4000 you got 1000 which you fullypaid for,but if u decided to get an extra 100,000,to BAD,they will culculate the 29.58% on RIGHTS ENTITLEMENT that is 1000 and not 100k,hope we are clear now, so u get 295....not 29,500(which i guess is what Wazuans r hoping for)
|
|
|
Rank: Member Joined: 4/14/2011 Posts: 639
|
mkonomtupu wrote:At that discount i'm all set to throw my uchumi capital gains into the NIC rights. I like the management, the business plan and I trust the Ndegwa family their firms are well managed and stable. This is the only bank I have bought at almost book value, my two cents take up the rights and be patient just like KCB What an advice mkono!!!!You were dead-on here
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
gesowan wrote:@sparkly it has hit 40 and heading north have u sold??
@gesowan, Didn't sell. Sense prevailed and i took part in the rights, plus the bonus have been downloaded into the CDS account. Stock is cheap IMO, the downside risk is low. I will hold out till Mr. Market gives me PER of 15. Am a buyer at 30 or below. Life is short. Live passionately.
|
|
|
Wazua
»
Investor
»
Stocks
»
Advice: CMA approves NIC Bank’s Sh2 billion Rights Issue .
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|