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Kenya airways Right Issue
mwekez@ji
#381 Posted : Saturday, June 09, 2012 8:09:46 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
This marks the rights issue that escaped failure by a whisker. If the subscription level had fallen short of 70% by a basis point, then KQ would have been forced to refund all applications!!!
mwekez@ji
#382 Posted : Saturday, June 09, 2012 8:13:54 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
.
QW25091985
#383 Posted : Saturday, June 09, 2012 8:52:28 AM
Rank: User


Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
We need to break 14 bob before we say the rights was a failure !
guru267
#384 Posted : Saturday, June 09, 2012 9:11:51 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
QW25091985 wrote:
We need to break 14 bob before we say the rights was a failure !


Wait and see the KQ share price CRASH in a FLASH!!

Coming soon to a stock exchange near you...
Mark 12:29
Deuteronomy 4:16
Aguytrying
#385 Posted : Saturday, June 09, 2012 10:56:00 AM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.
The investor's chief problem - and even his worst enemy - is likely to be himself
QW25091985
#386 Posted : Saturday, June 09, 2012 11:07:03 AM
Rank: User


Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
when did they issue this profit warning ?
PKoli
#387 Posted : Saturday, June 09, 2012 6:27:17 PM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.


When will they start utilizing the rights funds?
Aguytrying
#388 Posted : Saturday, June 09, 2012 6:59:41 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
QW25091985 wrote:
when did they issue this profit warning ?


Check post 352
The investor's chief problem - and even his worst enemy - is likely to be himself
QW25091985
#389 Posted : Saturday, June 09, 2012 7:11:23 PM
Rank: User


Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
Aguytrying wrote:
QW25091985 wrote:
Aguytrying wrote:
QW25091985 wrote:
[quote=Ali Baba]Its good for all of you to sober up and note a comment by a Ceo of a major US airline who said that,"airlines are a good place to work and earn salaries but never a good place to invest your money...".I can't touch KQ,but again that is me....


i wish you touched it when it was trading at 11.25 ( ipo price) and sold when it was trading at 160's during the good old days .
By i wounder with all the airlines reporting bad results and giving profit warnings left right and center you just ask what is KQ doing right ?


Are aware of KQ's profit warning for this financial year?


is there one ? haven't heard ! but lets agree KQ is definitely doing well and better than other airplanes


4 months ago!

http://af.reuters.com/ar...s/idAFL5E8CR2L420120127[/quote]

Haa! this is bad !Now why ?No wonder there's no interest in this counter even as foreigners are buying up banking'stocks and other stocks .Been wonderin'? lets see how operating magin will look like !
Sufficiently Philanga....thropic
#390 Posted : Saturday, June 09, 2012 10:05:37 PM
Rank: Elder


Joined: 9/23/2010
Posts: 2,221
Location: Sundowner,Amboseli
Chewing a composure at stage 7Drool
really cold out hered'oh! but it wont be longPray and i'll be homesmile
@SufficientlyP
guru267
#391 Posted : Saturday, June 09, 2012 11:37:57 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Sufficiently Philanga....thropic wrote:
Chewing a composure at stage 7Drool
really cold out hered'oh! but it wont be longPray and i'll be homesmile


Laughing out loudly stage 7 is uko ndaaani... i.hope we get to pick you up after i board @ stage 9 smile
Mark 12:29
Deuteronomy 4:16
guru267
#392 Posted : Saturday, June 09, 2012 11:54:42 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.


This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Mark 12:29
Deuteronomy 4:16
VituVingiSana
#393 Posted : Sunday, June 10, 2012 6:49:34 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,118
Location: Nairobi
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.

This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
guru267
#394 Posted : Sunday, June 10, 2012 8:25:51 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.

This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.


I thought KLM + GOK + IFC + CITI = 70%.

Doesnt this mean that no local individual or institutions or foreigners touched this rights issue.. These are the same guys who will drive the price below 10bob
Mark 12:29
Deuteronomy 4:16
VituVingiSana
#395 Posted : Sunday, June 10, 2012 11:21:34 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,118
Location: Nairobi
guru267 wrote:
VituVingiSana wrote:
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.

This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.


I thought KLM + GOK + IFC + CITI = 70%.

Doesnt this mean that no local individual or institutions or foreigners touched this rights issue.. These are the same guys who will drive the price below 10bob
Citibank had underwritten only 2% & did not need to take it up if they got 2% foreign investors which they did via IFC. Also KLM's % application/allocation was reduced to keep Kenyan control at 50%
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Sufficiently Philanga....thropic
#396 Posted : Sunday, June 10, 2012 1:49:14 PM
Rank: Elder


Joined: 9/23/2010
Posts: 2,221
Location: Sundowner,Amboseli
guru267 wrote:
Sufficiently Philanga....thropic wrote:
Chewing a composure at stage 7Drool
really cold out hered'oh! but it wont be longPray and i'll be homesmile


Laughing out loudly stage 7 is uko ndaaani... i.hope we get to pick you up after i board @ stage 9 smile

@SufficientlyP
mwekez@ji
#397 Posted : Sunday, June 10, 2012 11:15:03 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
VituVingiSana wrote:
Kenyan (esp retail) shareholders did not participate much. KQ's management thought the Kenyan institutions would participate but they too stayed out.


What informs the highlighted conclusion
mwekez@ji
#398 Posted : Sunday, June 10, 2012 11:24:00 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
VituVingiSana wrote:
guru267 wrote:


I thought KLM + GOK + IFC + CITI = 70%.

Doesnt this mean that no local individual or institutions or foreigners touched this rights issue.. These are the same guys who will drive the price below 10bob
Citibank had underwritten only 2% & did not need to take it up if they got 2% foreign investors which they did via IFC. Also KLM's % application/allocation was reduced to keep Kenyan control at 50%


That underwriting agreement presented a win for Citi.

Those who took the rights are:


GOK - 23%
KLM - 19%
Other existing shareholders - 18%
IFC - 10%

Total 70%
mwekez@ji
#399 Posted : Sunday, June 10, 2012 11:30:47 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
Kenya Airways will not scale down debt plan, says director

Kenya Airways has said that it will not scale down its massive borrowing plan despite the under-subscription of its rights issue which recorded a 70 per cent uptake level.

The rights issue was meant to raise additional capital for financing KQ’s expansion plans, as well as address its debt-capital ratios.

The airline’s group finance director, Alex Mbugua, however, said borrowing projections will not be scaled back since the rights issue had hit the 70 per cent target, which will allow a “comfortable” debt to equity mix.

Mr Mbugua also said that the firm “would not adopt a conservative dividend policy.

http://www.businessdailyafrica....6/-/w4xyjcz/-/index.html
Aguytrying
#400 Posted : Monday, June 11, 2012 11:11:10 AM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
guru267 wrote:
Aguytrying wrote:
New total issued shares is 1.496 Billion.
Profit warning means profits will be at best 75% of 3.5B net profits made last year= 2.47.
EPS 2.47/1.496= 1.65.

This is better in terms of dilution, as compared if all rights were taken up. at 10 bob it would trade at a PE of 6.


This is a best case scenario which lacks prudence.. What if PAT comes in 50%-75% lower.. or even maybe a loss??
Fewer shares issued also means fewer funds raised and this is probably negative for the company..

A 0% vote of confidence from minority shareholders!!


For the company is bad for dilution its a relief.
Lets wait for the results this wed. Mine was just a best case scenario estimate which was on the optimistic i must admit
The investor's chief problem - and even his worst enemy - is likely to be himself
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