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Advice: CMA approves NIC Bank’s Sh2 billion Rights Issue .
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gesowan
#1 Posted : Tuesday, July 24, 2012 8:59:19 PM
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??
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  | | Edit by moderator: Tuesday, October 16, 2012 12:12 PM | Reason: topic clarified
sparkly
#2 Posted : Tuesday, July 24, 2012 9:55:02 PM
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.
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gesowan
#3 Posted : Tuesday, July 24, 2012 10:10:10 PM
Rank: Member

Joined: 11/6/2010
Posts: 289
thanks alot
i need to disable this thread....
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the deal
#4 Posted : Tuesday, July 24, 2012 10:50:19 PM
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...
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guru267
#5 Posted : Wednesday, July 25, 2012 5:34:53 AM
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
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  | | Edit by user: Wednesday, July 25, 2012 9:16 AM | Reason: Not specified
Aguytrying
#6 Posted : Wednesday, July 25, 2012 9:54:30 AM
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
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bartum
#7 Posted : Wednesday, July 25, 2012 10:02:33 AM
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
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  | | Edit by user: Wednesday, July 25, 2012 12:05 PM | Reason: Not specified
kyt
#8 Posted : Wednesday, July 25, 2012 10:05:11 AM
Rank: Elder

Joined: 11/7/2007
Posts: 2,182
thats a sane strategy right there. AGUY
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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mkonomtupu
#9 Posted : Wednesday, July 25, 2012 11:53:59 AM
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
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accelriskconsult
#10 Posted : Wednesday, July 25, 2012 12:43:31 PM
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
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