wazua Tue, Jan 27, 2026
Welcome Guest Search | Active Topics | Log In

KPC IPO - Bearish Noise
mufasa
#1 Posted : Monday, January 26, 2026 9:53:17 AM
Rank: Member


Joined: 4/15/2008
Posts: 229
Current date check: Jan 26, 2026 – IPO still wide open (closes Feb 19), so plenty of time.

I'm going contrarian here. Yeah, most analysts and pundits are bearish on this KPC IPO.
High valuation chatter (on twitter there's talk of 22x P/E looks stretched, low dividend yield compared to peers like KenGen at around 9%, transparency/legal concerns floating around, and fears of post-listing drop once reality hits).
My Play - long-term upside in Kenya's energy/transport backbone. Pipelines aren't sexy, but they're monopoly-ish and steady
Plus, KPC's dividend policy commits to paying out 50% of net earnings as dividends, which does make it attractive-ish.
Bullish on Kes 12.0 by 31st Dec. (Based on the fact that NSE will be on a bullish trend this year)

Jumping out at 7.00 if it starts goin Bearish, then i jump back in. (I missed safaricom at 2bob)



Do it today! Tomorrow is promise to no-one.
MaichBlack
#2 Posted : Monday, January 26, 2026 10:31:25 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,743
That P/E is a huge no for me! There are many other stocks in the NSE with way better valuation with a number trading below book value!!!

This one I sit out and watch!

I will be buying another bank starting this week. I am too over invested in banks but it still makes sense investing in them.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
jawgey
#3 Posted : Monday, January 26, 2026 10:34:39 AM
Rank: Member


Joined: 1/13/2014
Posts: 398
Location: Denmark
mufasa wrote:
Current date check: Jan 26, 2026 – IPO still wide open (closes Feb 19), so plenty of time.

I'm going contrarian here. Yeah, most analysts and pundits are bearish on this KPC IPO.
High valuation chatter (on twitter there's talk of 22x P/E looks stretched, low dividend yield compared to peers like KenGen at around 9%, transparency/legal concerns floating around, and fears of post-listing drop once reality hits).
My Play - long-term upside in Kenya's energy/transport backbone. Pipelines aren't sexy, but they're monopoly-ish and steady
Plus, KPC's dividend policy commits to paying out 50% of net earnings as dividends, which does make it attractive-ish.
Bullish on Kes 12.0 by 31st Dec. (Based on the fact that NSE will be on a bullish trend this year)

Jumping out at 7.00 if it starts goin Bearish, then i jump back in. (I missed safaricom at 2bob)





"Based on the fact that NSE will be on a bullish trend this year"..... that's a very risky assumption.
Seeing is believing
MaichBlack
#4 Posted : Monday, January 26, 2026 10:34:52 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,743
The price of KPC might go up but the value will remain low.

OMCs will have to buy, NSSF might be forced to buy etc. Given that these are not traders/short term investors, available volumes might be low thereby supporting the price.

But I still would rather buy value!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
mufasa
#5 Posted : Monday, January 26, 2026 1:04:06 PM
Rank: Member


Joined: 4/15/2008
Posts: 229
MaichBlack wrote:
The price of KPC might go up but the value will remain low.

OMC will have to buy, NSSF might be forced to buy etc. Given that these are not traders/short term investors, available volumes might be low thereby supporting the price.

But I still would rather buy value!!!


Spot on. institutions could soak up big chunks as long-term holders. No real short-term traders dumping, which might keep the floor higher than pure fundamentals suggest, at least initially. The 50% net earnings dividend policy - tick, monopoly -tick

At 22x trailing P/E it's premium, sure, but if FY2026 EPS hits KSh 0.44–0.50 with modest growth, and they deliver on dividends (DPS KSh 0.22+), the yield could appeal
Do it today! Tomorrow is promise to no-one.
Users browsing this topic
Guest (3)
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2026 Wazua.co.ke. All Rights Reserved.