I'm dissapointed by these rights, i was really looking forward to them. If you ask me its like Britam are acquiring a few more shares in HFCK at the same price they bought the ones from equity (while HFCK raises capitla)

Surely even 1 for every 4 wouldve been acceptable.

patience my friend

Forgive me but I don't understand the cause of your disappointment. Pricing - too high; too low? Number of rights/shares - too high, too low?

Clarify tafadhali.

Too late for sell and hold unless there is someone willing to buy your allocated rights at a premium. And if they do, it should be at > 15/= (which you will NOT get!) otherwise you could have simply sold you shares at 45/= - 55/=.

In conclusion, too late to sell or hold. Period.

I beg to differ.

Don't forget the company will now have an extra Kshs. 3.5 Billion at hand. So you are basically buying the company at the "same price" only that it now has 3.5 Billion extra at hand. This money is meant to support the company's strategy so the EPS should be higher because of the rights issue money than the recalculated EPS you have in post #1101.

Of course it all depends on how they deploy the funds but in theory at least the EPS should be much better. And it is all theory in any case because even assuming the EPS remains "constant" is based on assumption that performance remains constant.

In summary, I am saying your calculation ignores the extra 3.5 Billion the company will have at hand and which it doesn't have now. Even if that money was to be deposited in an account (Or money market, bonds etc.) earning 10% p.a., that's a cool 350 million in extra earnings - that translates to Kshs. 1/= extra per (diluted) share!!! And that is using the least creative approach.