Good info...but how is the share doing now? over/undervalued?

Quite simple really. I took up my rights (and a very small additional allocation).

My average considering bonuses and the rights was 29.

Then i sold everything (except some odd lot of 93) at 53-60.

This time i am hoping the BR price will dip below 40. I will then buy, participate in the rights and wait to sell AR at any price above 60.

@sparkly. the price is unlikely to even go down! see how DTK rallied to 280. I'm for seeing a similar pattern here. may rally to 75 cum rights. then rights will be in short supply. and Will go for a premium.

Time to buy is now at 60.00. cum rights sell half at a profit. take up rights sell the other half towards dec at a higher price than 60.00

this is assuming not very dilutive rights like DTK

I guess it's true that investment in knowledge pays the best dividends. happy hunting

Stock liquidity will improve greatly. They have issued 54,298,415 shares in the concluded bonus issue and a further circa. 90,000,000 shares in the upcoming rights issue.

Did they announce the clear details of this rights? anybody...

Why is it shrouded in so much secrecy, what are they hiding, they held the AGM, why not announce the stuff we start planning for it, September is next month.

He was asked why NIC doesn't take more than the suggested ksh 2b, Ndegwa said taking more will mean a lower return on shareholder funds, so they will take small bits as they have done previously. On the previous two times they have gone for 1:10. Payments in mid-October if all regulatory approvals received according to their timetable.

That makes sense. No point in raising a lot of cash like KQ did but then leave it in the bank. Pun intended. It costs shareholders much more to give NIC more cash than NIC can deploy. It is easier and cheaper for the shareholders to wait for NIC to come back for another Rights Issue in 2016. For 2014-2015, NIC can raise KES 8bn in Tier 2 capital.

Another smart Board that does this is DTB which raises cash as it needs it. Why? Look at the Board... It consists of SHAREHOLDER-DIRECTORS [or those who represent the major shareholders] not just MANAGERS like Naikuni or Mbugua and NON-EXECS without skin in the game in KQ. Even KPLC raised more than they required in one shot since the 'owners' true interests are not represented. Then came the under-performance.

Read what Warren Buffett says about directors. One needs directors who are competent but also wealthy enough to not be bothered with perks e.g. free flights, board fees, travel allowances, etc. And if these directors are significant shareholders too then they want to look after their investment. I missed the boat on KCB but Sunil Shah had 10% at one time & drove the immense transformation at KCB. He then reduced his shareholding to 5% per CBK guidelines and left the board after 8 years per KCB's guidelines.

Ndegwa said that to have more than 25% they would have to apply for it thereby delaying the process, and also make a declaration that there was no takeover intended, which would all be granted but would take time. They would also have to undertake to offload excess shares within a specified time regardless of market conditions.