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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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Othelo
#141 Posted : Friday, February 20, 2015 11:41:24 AM
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15B will be snapped up very easily, watch this space!!!!
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Aguytrying
#142 Posted : Friday, February 20, 2015 11:54:05 AM
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Joined: 7/11/2010
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Ericsson wrote:
@Aguytrying
You will be shocked;KENGEN will raise the 50bn they require.
During the PIBO offer they raised 25bn;it's rights issue raised 26.8bn against the targeted amount of 7.8bn.
With gava taking the bulk or 35bn and KENGEN requiring 15bn from the public it will be a success


Lets say they raise the 15bn. my problem is what comes after than. dilution, return on equity, share price hammered. Shareholder loses out long run
The investor's chief problem - and even his worst enemy - is likely to be himself
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Aguytrying
#143 Posted : Friday, February 20, 2015 11:56:19 AM
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Ericsson wrote:
The 50bn KENGEN requires to do a balance on the debt to equity ratio.
They want to take more loans from development institutions like JICA and European Investment Bank for the geothermal power projects.
It's the reason the money is needed in one-go.
Raising in smaller amounts has it's challenges.Let them do the rights issue we get cheaper power.
@Aguytrying
Kenya watu wako na pesa we ndio huna


ha ha. Yenyewe mi sina hio doo. I'll watch from the sidelines like i watched KQ
The investor's chief problem - and even his worst enemy - is likely to be himself
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mthaka
#144 Posted : Friday, February 20, 2015 12:08:48 PM
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have they wired the dividend?
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VituVingiSana
#145 Posted : Friday, February 20, 2015 12:16:26 PM
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Joined: 1/3/2007
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Ericsson wrote:
@Aguytrying
You will be shocked;KENGEN will raise the 50bn they require.
During the PIBO offer they raised 25bn;it's rights issue raised 26.8bn against the targeted amount of 7.8bn.
With gava taking the bulk or 35bn and KENGEN requiring 15bn from the public it will be a success

The PIBO offered an attractive Tax-Free coupon. Which is this 26.8bn Rights Issue you are talking of?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#146 Posted : Friday, February 20, 2015 12:19:29 PM
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KENGEN initial public offer in 2006 not rights issue
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#147 Posted : Friday, February 20, 2015 12:21:07 PM
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@Aguytrying
After the rights issue the share price will be in the ranges 7 to 8 then start rising as profits start growing from additional revenue from the new power plants.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#148 Posted : Friday, February 20, 2015 12:32:36 PM
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Aguytrying wrote:
Ericsson wrote:
The 50bn KENGEN requires to do a balance on the debt to equity ratio.
They want to take more loans from development institutions like JICA and European Investment Bank for the geothermal power projects.
It's the reason the money is needed in one-go.
Raising in smaller amounts has it's challenges.Let them do the rights issue we get cheaper power.
@Aguytrying
Kenya watu wako na pesa we ndio huna


ha ha. Yenyewe mi sina hio doo. I'll watch from the sidelines like i watched KQ

Hallelujah! And then buy them at a discount to the Rights Price in 2017...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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kawi254
#149 Posted : Friday, February 20, 2015 2:00:45 PM
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The 2013 AGM only approved a rights issue of 2.2 billion shares and as such a 3 for every 1 share rights issue cannot happen - barring another AGM. There is a lot of misinformation on this that is not helped by KenGen's silence on this.
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VituVingiSana
#150 Posted : Friday, February 20, 2015 3:17:32 PM
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kawi254 wrote:
The 2013 AGM only approved a rights issue of 2.2 billion shares and as such a 3 for every 1 share rights issue cannot happen - barring another AGM. There is a lot of misinformation on this that is not helped by KenGen's silence on this.


Excellent point. Then 1:1 since KenGen has 2.2bn issued shares. At current prices, assuming a discount of 20%, the max KenGen can raise is 20bn which falls substantially short of the 50bn bandied around on Wazua.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#151 Posted : Friday, February 20, 2015 4:11:19 PM
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@VituVingiSana;
In the AGM they authorized creation of an addition 7.8 billion shares.
As per the norm the number of shares to be issued during the rights issue and amount to be raised;there will be an AGM to approve these.
The company has spoken;they want to raise ksh.50bn and are just waiting for gava to state at what time is comfortable for them for the rights issue to be held.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#152 Posted : Friday, February 20, 2015 5:00:59 PM
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Ericsson wrote:
@VituVingiSana;
In the AGM they authorized creation of an addition 7.8 billion shares.
As per the norm the number of shares to be issued during the rights issue and amount to be raised;there will be an AGM to approve these.
The company has spoken;they want to raise ksh.50bn and are just waiting for gava to state at what time is comfortable for them for the rights issue to be held.

And if you are right (vs what @kawi254 wrote) then it can easily accommodate the 3:1 (or even 3.5:1). 6.6bn Rights Shares x 8 = 53bn [50bn + costs]. Shs 8/share is a 25% discount to the current price.

Excluding GoK, KenGen needs to raise 15bn. If there is a "Strategic Investor/Financier" then the funds will easily be raised. If not, then it might be a stretch!

I like KenGen. I think they will do well as a firm. I like its prospects. What I do not like is the EPS/ROE based on 8.8bn shares for the near future. I would consider looking at it 2 years AFTER the Rights Issue.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#153 Posted : Friday, February 20, 2015 5:12:43 PM
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@VituVingiSana;
It won't be a stretch raising the ksh.15bn even without a strategic investor.
KENGEN corporate issues have been record breaking starting with it's listing.It just shows the confidence investors have with the company.
Like I said watu wako na pesa we ndio huna
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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kawi254
#154 Posted : Friday, February 20, 2015 8:53:31 PM
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@VituVingiSana & Ericsson.

See following link: ->http://www.capitalfm.co.ke/business/2013/12/kengen-shareholders-approve-plans-to-raise-capital/

NAIROBI, Kenya, Dec 20 – Kenya Electricity Generating Company (KenGen) shareholders have approved plans by the company to raise new capital to finance power projects in 2014.

This will see the company issue 2.2 billion shares in the market to raise approximately Sh30 billion through a Rights Issue before June next year.

The company has a total of 2.2 billion shares listed at the Nairobi Securities Exchange (NSE) meaning that the Rights Issue would be in the ratio of 1:1.

Ultimately, KenGen plans to raise its share capital from Sh5.5 billion to Sh25 billion through creations of 7.7 billion new shares.

The 2.2 billion new shares approved on Friday is the first tranche in the capital raising project by Kenya’s largest electricity producer seeking to raise Sh350 billion for new projects over the next four years through a mix of debt and equity.
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Aguytrying
#155 Posted : Saturday, February 21, 2015 2:33:09 PM
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Joined: 7/11/2010
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Ericsson wrote:
@VituVingiSana;
It won't be a stretch raising the ksh.15bn even without a strategic investor.
KENGEN corporate issues have been record breaking starting with it's listing.It just shows the confidence investors have with the company.
Like I said watu wako na pesa we ndio huna


IPO listing was at 11.90. 8 years down the line the share trades at 10.65. 10% down. even the staunchest of investors can be forgiven for not being so confident.
The investor's chief problem - and even his worst enemy - is likely to be himself
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sparkly
#156 Posted : Saturday, February 21, 2015 9:34:26 PM
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Joined: 9/23/2009
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Aguytrying wrote:
Ericsson wrote:
@VituVingiSana;
It won't be a stretch raising the ksh.15bn even without a strategic investor.
KENGEN corporate issues have been record breaking starting with it's listing.It just shows the confidence investors have with the company.
Like I said watu wako na pesa we ndio huna


IPO listing was at 11.90. 8 years down the line the share trades at 10.65. 10% down. even the staunchest of investors can be forgiven for not being so confident.


Bought at IPO price, sold at 33.

Came back for more in 2013...
Life is short. Live passionately.
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Aguytrying
#157 Posted : Sunday, February 22, 2015 7:54:00 PM
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Joined: 7/11/2010
Posts: 5,040
sparkly wrote:
Aguytrying wrote:
Ericsson wrote:
@VituVingiSana;
It won't be a stretch raising the ksh.15bn even without a strategic investor.
KENGEN corporate issues have been record breaking starting with it's listing.It just shows the confidence investors have with the company.
Like I said watu wako na pesa we ndio huna


IPO listing was at 11.90. 8 years down the line the share trades at 10.65. 10% down. even the staunchest of investors can be forgiven for not being so confident.


Bought at IPO price, sold at 33.

Came back for more in 2013...


so its good for speculation but terrible for long term hold. well played though
The investor's chief problem - and even his worst enemy - is likely to be himself
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maka
#158 Posted : Monday, February 23, 2015 9:14:04 AM
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Joined: 4/22/2010
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Location: Nairobi
Finally here...
possunt quia posse videntur
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mthaka
#159 Posted : Monday, February 23, 2015 10:00:02 AM
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have they wired the dividend?
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mkonomtupu
#160 Posted : Monday, February 23, 2015 11:59:50 AM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
Quote:
Quasi-public energy company KenGen will announce details of the planned rights issue next month, it said.

Managing director Albert Mugo said the government, which owns a 70 per cent stake in Kenya Electricity Generating Company, is expected give its nod within two weeks, setting the pace for the cash call.

KenGen plans to raise about Sh15 billion in fresh capital finance its projects, including raising energy generation from geothermal sources and wind.

“The way the government takes its position in the rights issue is very critical to the whole cash call, so we have been waiting as they seek relevant approvals, but I can say the discussion is almost concluded,” said Mugo.

He said that a third project expected to supply 70 megawatts of power is short of Sh8.23 billion ($90 million) financing.
- See more at: http://www.the-star.co.k...th#sthash.2zS6Lz8V.dpuf
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