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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Sufficiently Philanga....thropic wrote: I saw a guy snap the Kengens on offer towards market close from 9.50 to 9.75, picking them all and staying on board(GTC) at 9.50. This must have been @Mkonotupu  @SufficientlyP
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Sufficiently Philanga....thropic wrote:Sufficiently Philanga....thropic wrote: I saw a guy snap the Kengens on offer towards market close from 9.50 to 9.75, picking them all and staying on board(GTC) at 9.50. This must have been @Mkonotupu Not really mkonomtupu is he? ha ha The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Aguytrying wrote:Sufficiently Philanga....thropic wrote:Sufficiently Philanga....thropic wrote: I saw a guy snap the Kengens on offer towards market close from 9.50 to 9.75, picking them all and staying on board(GTC) at 9.50. This must have been @Mkonotupu Not really mkonomtupu is he? ha ha @SufficientlyP
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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In the 2015/2016 Budget ( link), Table 19: LIST OF SEMI - AUTONOMOUS GOVERMENT AGENCIES RECEIVING FUNDS FROM THE FY 2015/16 BUDGET, KenGen will receive Ksh 13,078,315,360. This i assume will be the Goverment's 70% contribution to the rights issue. At 70% Govt share holding, the rights will be Ksh 18,683,307,657.14. At today's price of Ksh 9.60 this is a 1:1 rights issue at a discounted price of Ksh 8.50 ?
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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kawi254 wrote:In the 2015/2016 Budget ( link), Table 19: LIST OF SEMI - AUTONOMOUS GOVERMENT AGENCIES RECEIVING FUNDS FROM THE FY 2015/16 BUDGET, KenGen will receive Ksh 13,078,315,360. This i assume will be the Goverment's 70% contribution to the rights issue. At 70% Govt share holding, the rights will be Ksh 18,683,307,657.14. At today's price of Ksh 9.60 this is a 1:1 rights issue at a discounted price of Ksh 8.50 ? What happened to the debt to equity conversion?
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Rank: Elder Joined: 12/4/2009 Posts: 10,703 Location: NAIROBI
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You never know;gava may decide to convert not whole but part of the debt into equity and the remainder contribute cash. Now the key is how much kengen is targeting to raise in the rights issue. Is it ksh.18.63 bn as kawi254 says or ist ksh.50bn that the company has been marketing. 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 new CEO was too quick in mentioning about the rights issue yet those who pull the strings were/are not ready. These Kenyan CEOs need to have breaks on their mouths, the other one was Mbuvi of KQ and Ohana KK. Investor relations seem to be a foreign thing here. "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: 2/26/2012 Posts: 15,980
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Uhuru Kenyatta wrote:Meeting with the SGR Team at the CRBC Voi Camp. My Government has started negotiations with the company building the Standard Gauge Railway for the extension of the line from Nairobi to Naivasha after they complete the line from Mombasa to the capital city. The extension of 120 kilometres will link special industrial zones that would be established at Naivasha, home to the Olkaria geothermal power plants, to Nairobi and Mombasa. To attract investors to set up industrial complexes at the specially designated zones near Olkaria, my government will offer them subsidised power tariffs. Firms will also have their power connected directly from Olkaria to ensure uninterrupted supplies, and in some cases, companies —such as those dealing in apparel manufacturing — will be allowed access to steam. We will also set up many industrial parks along the route of the SGR. Already, the Ministry of Industrialisation has identified land for setting up industrial parks in Mariakani, Voi, Naivasha, Athi River and Emali. I directed all ministries and agencies to ensure they play their role in ensuring that the construction of the SGR is not impeded. We must do everything in our power to ensure that the SGR is delivered on time and on budget. There must be no laxity in terms of delivering what is one of our most transformational projects. "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: 7/21/2010 Posts: 6,184 Location: nairobi
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murchr wrote:The new CEO was too quick in mentioning about the rights issue yet those who pull the strings were/are not ready. These Kenyan CEOs need to have breaks on their mouths, the other one was Mbuvi of KQ and Ohana KK. Investor relations seem to be a foreign thing here. they dragged their feet when the market was bullish. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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mlennyma wrote:murchr wrote:The new CEO was too quick in mentioning about the rights issue yet those who pull the strings were/are not ready. These Kenyan CEOs need to have breaks on their mouths, the other one was Mbuvi of KQ and Ohana KK. Investor relations seem to be a foreign thing here. they dragged their feet when the market was bullish. Yeah the rights issue will be a flop. Interesting times
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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mkonomtupu wrote:mlennyma wrote:murchr wrote:The new CEO was too quick in mentioning about the rights issue yet those who pull the strings were/are not ready. These Kenyan CEOs need to have breaks on their mouths, the other one was Mbuvi of KQ and Ohana KK. Investor relations seem to be a foreign thing here. they dragged their feet when the market was bullish. Yeah the rights issue will be a flop. Interesting times insensitive management. they don't 'really' care. no skin in the game The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Aguytrying wrote:mkonomtupu wrote:mlennyma wrote:murchr wrote:The new CEO was too quick in mentioning about the rights issue yet those who pull the strings were/are not ready. These Kenyan CEOs need to have breaks on their mouths, the other one was Mbuvi of KQ and Ohana KK. Investor relations seem to be a foreign thing here. they dragged their feet when the market was bullish. Yeah the rights issue will be a flop. Interesting times insensitive management. they don't 'really' care. no skin in the game Delay is becoming suspect... Somebody has a cash pile and wants to buy Kengen on the cheap. Life is short. Live passionately.
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Rank: New-farer Joined: 2/9/2015 Posts: 11 Location: juja
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with all these projects power projects in kenya from geothermal,wind power,coal etc whats the future of kengen in the stock market...is the share price likely to increase in the future once all are commissioned?
I want to buy their share with a long time perspective.
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Rank: Elder Joined: 7/21/2010 Posts: 6,184 Location: nairobi
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mtaeric wrote:with all these projects power projects in kenya from geothermal,wind power,coal etc whats the future of kengen in the stock market...is the share price likely to increase in the future once all are commissioned?
I want to buy their share with a long time perspective. are you implying they all belong to kengen? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Nairobi, Kenya, Jun 5 – The Kenya Electricity Generating Company (KenGen) has successfully drilled another set of geothermal wells in this country, further boosting Kenya’s quest to be self sufficient in electricity. Three wells located within one pad with a total capacity of 33 megawatts, form one of Africa’s biggest well-pad which is located in the geothermal-rich Olkaria area. The wells comes months after, KenGen had mid last year, struck 30MW from a single geothermal well, named OW-921 in the same field. The well was connected to the 140MW Olkaria IV project. http://www.capitalfm.co....hermal-wells-in-olkaria/"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: 7/21/2010 Posts: 6,184 Location: nairobi
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[quote=murchr]Nairobi, Kenya, Jun 5 – The Kenya Electricity Generating Company (KenGen) has successfully drilled another set of geothermal wells in this country, further boosting Kenya’s quest to be self sufficient in electricity. Three wells located within one pad with a total capacity of 33 megawatts, form one of Africa’s biggest well-pad which is located in the geothermal-rich Olkaria area. The wells comes months after, KenGen had mid last year, struck 30MW from a single geothermal well, named OW-921 in the same field. The well was connected to the 140MW Olkaria IV project. http://www.capitalfm.co....ermal-wells-in-olkaria/[/quote] and this is what rais moi could have done long ago. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,134 Location: Nairobi
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mlennyma wrote:[quote=murchr]Nairobi, Kenya, Jun 5 – The Kenya Electricity Generating Company (KenGen) has successfully drilled another set of geothermal wells in this country, further boosting Kenya’s quest to be self sufficient in electricity. Three wells located within one pad with a total capacity of 33 megawatts, form one of Africa’s biggest well-pad which is located in the geothermal-rich Olkaria area. The wells comes months after, KenGen had mid last year, struck 30MW from a single geothermal well, named OW-921 in the same field. The well was connected to the 140MW Olkaria IV project. http://www.capitalfm.co....ermal-wells-in-olkaria/[/quote] and this is what rais moi could have done long ago. Moi and friends had just one constituency in mind. Themselves. That said, perhaps the technology to exploit geothermal was not as advanced as it is today. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 3/26/2012 Posts: 830
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141 billion rights issue may not be implemented at once as earlier stated. I am having a look at this counter and the profit growth in last two-three years is the best in NSE. The share has a forward PE of around 2. It is probably the cheapest stock currently at NSE. Evaluating the current economic conditions, I suspect that the government lacks their share of 100Billion that they must invest. If the rights are implemented in phases, the dilution may be manageable (which is the most likely scenario). I am beginning to personally think that even with the huge rights issue (as long as the capital is raised in five or more phases), the share may have some serious upside. If only I knew how they plan to implement the rights. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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S.Mutaga III wrote:141 billion rights issue may not be implemented at once as earlier stated. I am having a look at this counter and the profit growth in last two-three years is the best in NSE. The share has a forward PE of around 2. It is probably the cheapest stock currently at NSE. Evaluating the current economic conditions, I suspect that the government lacks their share of 100Billion that they must invest. If the rights are implemented in phases, the dilution may be manageable (which is the most likely scenario). I am beginning to personally think that even with the huge rights issue (as long as the capital is raised in five or more phases), the share may have some serious upside. If only I knew how they plan to implement the rights. What do you have to say if I add this piece of information Quote:“Our revenue moved from Sh8 billion to Sh11 billion, and that was mainly contributor of that was about the three months of full running of the geothermal. We expect the other half year, when that geothermal plant will half run at the 280MW capacity, the results will even be better,”
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Rank: Member Joined: 3/26/2012 Posts: 830
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mkonomtupu wrote:S.Mutaga III wrote:141 billion rights issue may not be implemented at once as earlier stated. I am having a look at this counter and the profit growth in last two-three years is the best in NSE. The share has a forward PE of around 2. It is probably the cheapest stock currently at NSE. Evaluating the current economic conditions, I suspect that the government lacks their share of 100Billion that they must invest. If the rights are implemented in phases, the dilution may be manageable (which is the most likely scenario). I am beginning to personally think that even with the huge rights issue (as long as the capital is raised in five or more phases), the share may have some serious upside. If only I knew how they plan to implement the rights. What do you have to say if I add this piece of information Quote:“Our revenue moved from Sh8 billion to Sh11 billion, and that was mainly contributor of that was about the three months of full running of the geothermal. We expect the other half year, when that geothermal plant will half run at the 280MW capacity, the results will even be better,” The only bad thing about Kengen is the huge rights issue and the huge government shareholding. I am learning to avoid government owned businesses so I am in a rather confused state right now. Here comes a very good chance to own a great company at a great price...but the majority-owner is an issue. I guess I will stick to my KPLC shares. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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KenGen’s Kes 141 Billion Rights Offer to Quadruple Shares in Issue
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