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NIC 1:4 rights issue - sh21 per share
Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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I wonder how large the Ndegwas' application was beyond the 25%? I am sure it was over-subscribed even without the Ndegwas applying for additional shares. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 11/6/2010 Posts: 289
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Does anyone know the formula to allocate the said shares????????????
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Rank: Elder Joined: 7/21/2010 Posts: 6,184 Location: nairobi
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I knew and didnt bother applying additional shares,refunds ghost after tying money "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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The allocation has not been announced. I figure it will be in the newspapers tomorrow. I wonder if the Ndegwas used their clout to get 35%. I think the Ndegwas called Ndungu who called Githae who told Muthuara that let the brothers increase it to 35%. It's all in-house. Tuko Pamoja. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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12.7 million shares out the 98.7 million allocated were not taken,this will form the pool for those who applied for more shares.To be fair to all shareholders the allocation criteria for such, should always be in the IM.
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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cnn wrote: 12.7 million shares out the 98.7 million allocated were not taken,this will form the pool for those who applied for more shares.To be fair to all shareholders the allocation criteria for such, should always be in the IM. It was not specified clearly in the IM. I read it multiple times & it was vague but the ultimate authority was given to the Board of Directors... most of whom are appointees, related or connected to the Ndegwas... *BTW, where did you get the allocation info/criteria & that 12.7mn were untaken? I just checked the NSE website but nothing is on there* Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/21/2010 Posts: 6,184 Location: nairobi
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http://af.reuters.com/ar...ws/idAFL6E8LA5JY20121010"Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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cnn wrote: 12.7 million shares out the 98.7 million allocated were not taken,this will form the pool for those who applied for more shares.To be fair to all shareholders the allocation criteria for such, should always be in the IM. I think SCB set the precedent in their previous rights issue where they assigned everyone who applied for extra shares a minimum number then prorated after that. The minimum allocation for extra shares then was 200 shares. If they use this formula, there are 25,000 shareholders who we can conservatively assume all applied for extra shares.. There are 12.7M untaken shares. If these are split equally among the 25k shareholders, then those who applied for extra shares can expect a minimum of 500 shares. This formula also takes care of the Ndegwa's potential illegality of exceeding the 25% rule.
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Rank: Member Joined: 11/6/2010 Posts: 289
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Shareholders did not apply for 12.7 million shares they were entitled to under the one-for-four rights issue, meaning those who had sought more shares than they were entitled to, would be allocated additional shares
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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238% oversubscription rate! Thats massive! Whats Ndegwas contribution to this? Then we can tell the pro rata rate to be applied in allotment of the few untaken rights
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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mwekez@ji wrote:238% oversubscription rate! Thats massive! Whats Ndegwas contribution to this? Then we can tell the pro rata rate to be applied in allotment of the few untaken rights No. NIC used an allocation policy no-one else has ever used & not shown or indicated in the IM. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:238% oversubscription rate! Thats massive! Whats Ndegwas contribution to this? Then we can tell the pro rata rate to be applied in allotment of the few untaken rights No. NIC used an allocation policy no-one else has ever used & not shown or indicated in the IM. In the announcement of rights issue results they have stipulated prorata basis Link
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:238% oversubscription rate! Thats massive! Whats Ndegwas contribution to this? Then we can tell the pro rata rate to be applied in allotment of the few untaken rights No. NIC used an allocation policy no-one else has ever used & not shown or indicated in the IM. In the announcement of rights issue results they have stipulated prorata basis Link No, read it again. It is pro-rata to the RIGHTS ENTITLEMENT not to the application of the Additional Shares. A shareholder who had 1,000,000 shares (Rights Entitlement) applies for 100,000 additional shares will get 100x a shareholder who had 10,000 shares (Rights Entitlement) but also applied for 10,000 shares. Assume the % allocation is 10% of the RIGHTS ENTITLEMENT then: A shareholder who had 1,000,000 shares (Rights Entitlement) applies for 100,000 additional shares will get 100,000 "Additional" shares vs a shareholder who had 10,000 shares (Rights Entitlement) but also applied for 10,000 shares wil get 1,000 shares. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:238% oversubscription rate! Thats massive! Whats Ndegwas contribution to this? Then we can tell the pro rata rate to be applied in allotment of the few untaken rights No. NIC used an allocation policy no-one else has ever used & not shown or indicated in the IM. In the announcement of rights issue results they have stipulated prorata basis Link No, read it again. It is pro-rata to the RIGHTS ENTITLEMENT not to the application of the Additional Shares. A shareholder who had 1,000,000 shares (Rights Entitlement) applies for 100,000 additional shares will get 100x a shareholder who had 10,000 shares (Rights Entitlement) but also applied for 10,000 shares. Assume the % allocation is 10% of the RIGHTS ENTITLEMENT then: A shareholder who had 1,000,000 shares (Rights Entitlement) applies for 100,000 additional shares will get 100,000 "Additional" shares vs a shareholder who had 10,000 shares (Rights Entitlement) but also applied for 10,000 shares wil get 1,000 shares. If so, it'll be an unfair allocation hiding behind the veil of pro rata. Next week on Friday we'll know when our CDS accounts are credited
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Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
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Pro rata without fixed minimum allocatio across board still gives advantage to the big boys while wanjiku gets their messly refunds. But again managing an oversubscription of that level is very difficult. You cant please all and therefore they have decided to go with the moneyed! Anyway we await for friday! Thieves
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Rank: Member Joined: 11/6/2010 Posts: 289
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so what happens to those guys who had a hundred shares and the applied for 500k shares it means they will het less than one hundred ,i now agree hope is not a strategy
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:238% oversubscription rate! Thats massive! Whats Ndegwas contribution to this? Then we can tell the pro rata rate to be applied in allotment of the few untaken rights No. NIC used an allocation policy no-one else has ever used & not shown or indicated in the IM. In the announcement of rights issue results they have stipulated prorata basis Link No, read it again. It is pro-rata to the RIGHTS ENTITLEMENT not to the application of the Additional Shares. A shareholder who had 1,000,000 shares (Rights Entitlement) applies for 100,000 additional shares will get 100x a shareholder who had 10,000 shares (Rights Entitlement) but also applied for 10,000 shares. Assume the % allocation is 10% of the RIGHTS ENTITLEMENT then: A shareholder who had 1,000,000 shares (Rights Entitlement) applies for 100,000 additional shares will get 100,000 "Additional" shares vs a shareholder who had 10,000 shares (Rights Entitlement) but also applied for 10,000 shares wil get 1,000 shares. If so, it'll be an unfair allocation hiding behind the veil of pro rata. Next week on Friday we'll know when our CDS accounts are credited Yes, it is a lie. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/21/2010 Posts: 6,184 Location: nairobi
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What i hate is the creation of odd lots which comes with it. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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Check this shady happenings at NIC Bank http://coldtusker.blogsp...ue-2012-shenanigans.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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after this rant, they have issued a revised notice to NSE http://t.co/SwNEcvde
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NIC 1:4 rights issue - sh21 per share
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