Thanks @mw€k€ for the 2012 accounts & breaking down salient features. 2011 accounts looked depressing. Ofcourse the high interest regime present then takes much of the blame. Hope the turnaround in 2012 holds.
This one I will watch from the sidelines!

#spectator ions

From a deep loss position in 2011 to 4.67 in EPS and 70 cents dividend in 2012 ...

A crazy observation is that they paid PKF to value the company at KES 8.5B. Thats a price per share of a whopping 21 bob!!! ... No details given on valuation methodology!!! ... DAMN!!!... CMA is sleeping on the job for not demanding information memorandum before this counter is listed!!!

Talk of lofty targets. Company generated <10 million dollar sales revenue in 2012 and its talking of hitting sales revenue of 1,000 million dollars in 2017 and 10,000 million dollars in 2022 ... are these the lofty assumptions used by PKF in valuing the company

At a net income of Ksh 167.7M for 2012 and a Book Value of Ksh 8.5B (which i assume will be the basis of determination of listing price); its return on equity = net income/shareholders equity is a depressing 1.97%.

Compare this with the ROE of Trans Century at 15.1% (P/B of 1.8); Centum at 18.4% (P/B of 1.0); Housing Finance at 15.0% (P/B of 1.1).

At such a low ROE, which is about an eighth of its peers,i would price the share at a tenth of Ksh 21 hence a price of Ksh 2.00.

The price of Ksh 2.00 would mean a P/E of 4.30 which would be comparable to HFCK (p/e 7.5); Centum (p/e 5.6), trancentury (p/e of 12) all of which have better investor returns.

Based on the 2011 results which were a loss position, i think i'll stay out of this one unless their is a significant discount on the Ksh 2.00.

Happy Hunting.