The government is broke! They would not afford to participate even if they wanted. I am sure they are only too happy to sell their rights; might bridge the budget gap a little.

FYI they also sat out in the previous two offerings. Which is not a bad thing. Too much government = mismanagement.

Low bar to 'successful' Rights of 50%...

Now @young might know of a Nigerian Bank which wants to expand locally... They could easily gain 25% of KCB by buying up the Rights... or simply applying for the shares!

If KCB is smart... they shud look for a Chinese Investor like Stanbic... Chump change for most large Chinese Banks!

@young, I would want to believe that the offer price for the rights issue would only have been Kshs 14 if they were to issue shares as per the initial plan (1.1bn shares as opposed to .887bn shares). By the way, what informs your decision not to take up the rights?

I agree that Equity has a better PEG than KCB. But for the medium to longterm investor that I am, it is a matter of time before convergence. I also think there will be some consolidation of costs for KCB in the offing whose gains will hit the bottom line.

I am just curious - why would someone hold onto a 5 digit portfolio for a share they expect to hit 14 post rights? If there is conviction about this, why not exit at 21 and buy back at 14?

@qw - Then dont give them more money!

@tham - Yep, but convergence also implies similar management quality... Equity cant grow 50% every year but for the next 2 years I see them outpacing KCB

Though I will be as happy as a pig in shiit if KCB hits 14 bob, I think all this talk of KCB failing to raise the 15 billion is premature.
Kuna watu wana pesa and enough patience. Although it ended in the red, the share hit a high of 20.50/= today.
But like I said earlier, I'll be too happy if the share continued plummeting.

By Ana Monteiro
June 11 (Bloomberg) -- Kenya Commercial Bank Ltd., the
nation’s biggest lender by branches, had its recommendation
downgraded to “sell” from “buy” at Renaissance Capital.
“Depressed returns, increased capital risks and
disappointment at management’s decision not to source debt
funding” are reasons for the downgrade, Lagos-based analyst
Kato Mukuru and Nairobi-based Mbithe Muema wrote in a note to
clients dated today.
Kenya Commercial shareholders approved plans to increase
the lender’s share capital to 3.5 billion shillings ($4.8
million), the bank said on May 7.

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