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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
Rank: Member Joined: 9/30/2013 Posts: 254
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help me understand ,if they want to raise 15b and they have 2.2 billion shares, it means the ratio will be 1:1 and they can sell the shares at Kshs 7.50 to raise the 15 billion.my maths tells me ordinary Kenyans only own 660 million shares(30%).there will be a massive over subscription on this.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@mthaka; True ordinary Kenyans own only 660 million shares.The huge gava shareholding creates room for a massive oversubscription Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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mthaka wrote:help me understand ,if they want to raise 15b and they have 2.2 billion shares, it means the ratio will be 1:1 and they can sell the shares at Kshs 7.50 to raise the 15 billion.my maths tells me ordinary Kenyans only own 660 million shares(30%).there will be a massive over subscription on this. Yeah I expect them to do so and not the 50 billion rights that was mentioned in this thread. This means for the public a rights issue of only 4.5 billion and government 10.5 billion. Let's wait and see
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Rank: Member Joined: 9/30/2013 Posts: 254
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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Good of them. How will this rights thing behave, are we likely to see 8 or 12?
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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When are they announcing their half year results we see what bottomline effect the olkaria I extension and 4 additional power has boosted the profits. Kenya power in half year results said power consumption grew by 5.5%. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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the Star wrote: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.
KenGen is looking to generate at least 450MW of power by 2017.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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GOK should offload 25% to a strategic investor like GE, Westinghouse, Toyota, Samsung etc. That would really unlock the value in the share. Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@sparkly Nothing like a strategic investor from overseas. Kenyans can become the strategic investors.For how long will we go to the west to come and solve problems which we can sort ourselves. But anyway that is the condition of the African mind. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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That is the same thinking that happened to Telkom Kenya. The company is in a worst state now than it was in 2007. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Ericsson wrote:That is the same thinking that happened to Telkom Kenya.
The company is in a worst state now than it was in 2007.
There was chai/ugali/chicken in the deal. Look up Alcatraz. On the other hand look at Safaricom after Vodafone took control from KPTC. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Ericsson wrote:@sparkly
Nothing like a strategic investor from overseas.
Kenyans can become the strategic investors.For how long will we go to the west to come and solve problems which we can sort ourselves.
But anyway that is the condition of the African mind.
That's fine but not with GoK as the anchor shareholder where it can control or influence major decisions. I read that GDC is mired in corruption over the rigs. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Ericsson wrote:@sparkly
Nothing like a strategic investor from overseas.
Kenyans can become the strategic investors.For how long will we go to the west to come and solve problems which we can sort ourselves.
But anyway that is the condition of the African mind.
Kengen is already the biggest power producer in Kenya. Who would qualify to be the strategic investor... Kirubi, Merali, Transcentury, Total man? Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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In Friday's newspapers the company has put an advert for the following; Expression of interest for provision of lead sponsoring brokerage services for a rights issue Expression of interest for provision of transaction advisory services for a rights issue. Rights issue iko jikoni coming soon. With the impressive half year results the number of shares to be issued in the rights issue will be scaled down to 4.4bn at a probabilistic price of 11.50 to raise the ksh.50bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Ericsson wrote:In Friday's newspapers the company has put an advert for the following;
Expression of interest for provision of lead
sponsoring brokerage services for a rights issue
Expression of interest for provision of transaction advisory services for a rights issue.
Rights issue iko jikoni coming soon.
With the impressive half year results the number of shares to be issued in the rights issue will be scaled down to 4.4bn at a probabilistic price of 11.50 to raise the ksh.50bn ha ha ha. these kengen guys are clever. good results spark the share price, raise the rights price. but wait, what about the average trading price before cut off date? plus discount to it. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Aguytrying wrote:Ericsson wrote:In Friday's newspapers the company has put an advert for the following;
Expression of interest for provision of lead
sponsoring brokerage services for a rights issue
Expression of interest for provision of transaction advisory services for a rights issue.
Rights issue iko jikoni coming soon.
With the impressive half year results the number of shares to be issued in the rights issue will be scaled down to 4.4bn at a probabilistic price of 11.50 to raise the ksh.50bn ha ha ha. these kengen guys are clever. good results spark the share price, raise the rights price. but wait, what about the average trading price before cut off date? plus discount to it. I think they should act fast because the hype of the half year results will fade fast and the jitters over dilution will return with force! Furthermore due to the high dilution they need to offer rights at a deep discount! That said 6.6Billion shares at 7.60 will be sufficient! Either way GOK has to contribute 35Billion.... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@guru267 6.6bn at 7.60 I highly doubt; KENGEN is looking at scaling down the number of shares to be issued to reduce the dilution and therefore price of the share post rights issue. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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Ericsson wrote:@guru267
6.6bn at 7.60 I highly doubt;
KENGEN is looking at scaling down the number of shares to be issued to reduce the dilution and therefore price of the share post rights issue. Even mama mboga knows that she can't simply increase the selling price for her cabbages so that she can sell less cabbages and still make the same money!!! Wanjiku gave up on this share long time ago. The government must have got certain assurances in terms of number of rights and price before they gave their assurance to take up theirs. It surely was not a "We have a rights issue. Will you take up yours?". "Yes we will." kind of conversation. The other remaining investors (both institutional and individual) are also not your average Wanjiku. They will not simply take up the rights just because they are on offer. And any remaining Wanjiku will not have the appetite for the rights given the history she has had with the the share price. And finally, it is a HUGE rights issue. If they mess up, they will be left with their rights, not enough money and reduced confidence in the share. Anything above 10/= will be a tough sell! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 10/26/2012 Posts: 136
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MaichBlack wrote:Ericsson wrote:@guru267
6.6bn at 7.60 I highly doubt;
KENGEN is looking at scaling down the number of shares to be issued to reduce the dilution and therefore price of the share post rights issue. Even mama mboga knows that she can't simply increase the selling price for her cabbages so that she can sell less cabbages and still make the same money!!! Wanjiku gave up on this share long time ago. The government must have got certain assurances in terms of number of rights and price before they gave their assurance to take up theirs. It surely was not a "We have a rights issue. Will you take up yours?". "Yes we will." kind of conversation. The other remaining investors (both institutional and individual) are also not your average Wanjiku. They will not simply take up the rights just because they are on offer. And any remaining Wanjiku will not have the appetite for the rights given the history she has had with the the share price. And finally, it is a HUGE rights issue. If they mess up, they will be left with their rights, not enough money and reduced confidence in the share. Anything above 10/= will be a tough sell! I agree i would not touch Kengen at anything over 10 Kshs.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Think of KQ which tried to go for a massive Rights Issue [and was plagued by poor performance]... and managed 14 of 21 billion even after roping in IFC in addition to GoK and KLM as anchors. Wanjiku didn't participate heavily. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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