where did you hear this?? provide a link if possible...

@guru267

In compliance with NSE rules for listed Companies, the KCB minders so advised NSE.
I've a copy in PDF format that I am unable to post here.
There will be an AGM on May 2nd in which they hope to endorse this amongst other proposals.

@cnn they cant use the bond market because it has coupon rates and a rights issue is interest free plus investors are willing to pay for them...

@B.Timer do they plan to raise the whole 15billion from the rights issue??? hence a the rights priced at 13.6bob

@guru,if i remember correctly,BBK did float a bond some 2-3 years ago,so its a way KCB may use.I agree on the intrest free aspect of a rights issue but the dilution?

Currently KCB has 2.4 Bn ordinary shares at the bourse.
They intent to create a further 1.1Bn ordinary shares to be offered to the existing shareholders at a discount, but once uploaded they will rank pari pasu with the existing shares.

The rights rate is yet to be determined as per their communication to NSE.
At the end otf the exercise KCB will have a whooping 3.5Bn ordinary shares shoving for space in the NSE.

KCB hehehehe!!!
Any clue of
The rights price
The Ratio of offer to existing share holders
The time frame ?
Bad on the short term but good for long term if the raised funds are judiciously used

This is the only info I can dig out from the KCB rights issue possibility/

http://www.businessdaily...2/-/6by13t/-/index.html

If others have any other relevant info please share

@Sparkly KCB is paying the price of over expansion to Sudan, Uganda, Tanzanic and might be Rwanda. I hope they do their SWOT /CBA analysis well, this requires a lot of funds

Good for long term if all these translates to good profit.
Too bad on long term if they consistently operate at a loss. I believe they need adequate working capital without digging too much on their reserve.
Though the frequency of rights issue (after 2 years), but they are also expanding too fast. The future will tell. I will take the rights if offered.

I have seen my local bank First Bank embark on rights issue on every othe year for 3 consecutive times for expansion (though internal), and it bec ame a success story.
Some banks business model are averse to corporate bonds. I think MD Martins Otieno is towing that line.

I think an investor needs to ask themselves this. Its 2 years since KCB did a Ksh2.5bn rights issue. Has KCB increased its profit by Ksh2.5bn since then?

I rest my case. Maybe its time for Odour to move on.

Yep 16 bob or less very likely to increase their share capital by extra 1.1B as they are targeting to raise 15 Bln
In 2008 5 Bln was raised not 2.5BLN (1 for 9 ratio)

The fears of dilution seemed to dominate online debates about the KCB rights issue.

However, others were of the view that the increased business from the funds raised would be of benefit to shareholders in the long-term


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