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KCB FY 2015 PBT +12% and PAT +16%
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Ericsson wrote:@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends Never been more wrong! Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Ericsson wrote:@murchr,littledove and mlennyama;
The formula is as below;
KCB is to give a dividend of sh.2 per share which translates to ksh.6.05bn if u multiply sh.2 by the number of issued shares of 3.025bn.
Instead they have decided to give ksh.1 in cash and sh.1 in script dividend.
NB:@littledove-shareholder has no choice to choose whether to take script dividend or cash.
The par value of KCB share is ksh.1 and the total number of issued shares is 3.025bn
After giving the ksh.3.025bn as dividend based on sh.1 per share,the balance remaining is ksh.3.025bn.
This ksh.3.025bn instead of giving in cash kcb gives u shares instead.
Divide ksh.3.025bn/sh.1 gives u 3.025bn shares
Divide script dividend of sh.1 by the par value sh.1 gives u 1 which means bonus of 1:1
Etc eTc etC
Wrong, They will determine the conversion price. It won't be 1.00. Possibly a price very close to current market price. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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enyands wrote:Ericsson wrote:@murchr,littledove and mlennyama;
The formula is as below;
KCB is to give a dividend of sh.2 per share which translates to ksh.6.05bn if u multiply sh.2 by the number of issued shares of 3.025bn.
Instead they have decided to give ksh.1 in cash and sh.1 in script dividend.
NB:@littledove-shareholder has no choice to choose whether to take script dividend or cash.NOT CORRECT!!!!u have a choice to accept or not!!
The par value of KCB share is ksh.1 and the total number of issued shares is 3.025bn
After giving the ksh.3.025bn as dividend based on sh.1 per share,the balance remaining is ksh.3.025bn.
This ksh.3.025bn instead of giving in cash kcb gives u shares instead.
Divide ksh.3.025bn/sh.1 gives u 3.025bn shares
Divide script dividend of sh.1 by the par value sh.1 gives u 1 which means bonus of 1:1 Again wrong. A scrip is not a bonus. This is why people need to attend George Mangs training on Young NSE investors
Etc eTc etC
So it will be market rate used on the 3.025b to issue shares or will there be a special rate
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@Aguytrying the sh.1 is the par value of KCB share not mkt value. @madebe; Only sh.1 of the sh.2 proposed as dividend will be given in cash.The remainder is in terms of additional shares Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Dividend reinvestment plans give shareholders the opportunity to use the cash dividends on their shares to buy more shares in the same company. With a Scrip dividend, new shares are issued by the company, which can be acquired by investors instead of a cash dividend payment. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Ericsson wrote:@Aguytrying
the sh.1 is the par value of KCB share not mkt value.
@madebe;
Only sh.1 of the sh.2 proposed as dividend will be given in cash.The remainder is in terms of additional shares They will announce the price which will be used to divide with the 3.025 b. But I can tell you for free it won't be 1.00 The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Ericsson wrote:@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends Ericsson wrote:A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7  Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@Aguytrying Clarified in the above post just before you sent yours Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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Pesa Nane wrote:Ericsson wrote:@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends Ericsson wrote:A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7 SIMPLIFIED: if you had 1,000 your dividends will be 2.00*1000*.95= 1,900. you will receive ghalf in cash ie 950/. if they dicided that each share will be 40 bob it means your scrip will be 950/40 which equals to 23 shares. it therefore means that price is the one that will determine if you accept the scrip or take cash dividends...Liberty sold their scrip close to the market price, EABL sold their scrip above the market price and that is how DIAGEO became to own over 50% of EABL
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Ericsson wrote:A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7 So a special way will be considered apart from market value. If that's the case then that's good
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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madebe wrote:Pesa Nane wrote:Ericsson wrote:@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends Ericsson wrote:A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7 SIMPLIFIED: if you had 1,000 your dividends will be 2.00*1000*.95= 1,900. you will receive ghalf in cash ie 950/. if they dicided that each share will be 40 bob it means your scrip will be 950/40 which equals to 23 shares. it therefore means that price is the one that will determine if you accept the scrip or take cash dividends...Liberty sold their scrip close to the market price, EABL sold their scrip above the market price and that is how DIAGEO became to own over 50% of EABL I dont think it's a matter of choice . They will impliment it.if it's a matter of choice then it will lead to financial complications. They will handle it above the board.try to imagine sending letters to every shareholder to make a choice ?? Disaster
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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enyands wrote:madebe wrote:Pesa Nane wrote:Ericsson wrote:@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends Ericsson wrote:A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7 SIMPLIFIED: if you had 1,000 your dividends will be 2.00*1000*.95= 1,900. you will receive ghalf in cash ie 950/. if they dicided that each share will be 40 bob it means your scrip will be 950/40 which equals to 23 shares. it therefore means that price is the one that will determine if you accept the scrip or take cash dividends...Liberty sold their scrip close to the market price, EABL sold their scrip above the market price and that is how DIAGEO became to own over 50% of EABL I dont think it's a matter of choice . They will impliment it.if it's a matter of choice then it will lead to financial complications. They will handle it above the board.try to imagine sending letters to every shareholder to make a choice ?? Disaster liberty send letters to all of us instructing if you want the shares don't take any action on the letter only those who wanted cash returned it "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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Aguytrying wrote:Ericsson wrote:@murchr,littledove and mlennyama;
The formula is as below;
KCB is to give a dividend of sh.2 per share which translates to ksh.6.05bn if u multiply sh.2 by the number of issued shares of 3.025bn.
Instead they have decided to give ksh.1 in cash and sh.1 in script dividend.
NB:@littledove-shareholder has no choice to choose whether to take script dividend or cash.
The par value of KCB share is ksh.1 and the total number of issued shares is 3.025bn
After giving the ksh.3.025bn as dividend based on sh.1 per share,the balance remaining is ksh.3.025bn.
This ksh.3.025bn instead of giving in cash kcb gives u shares instead.
Divide ksh.3.025bn/sh.1 gives u 3.025bn shares
Divide script dividend of sh.1 by the par value sh.1 gives u 1 which means bonus of 1:1
Etc eTc etC
Wrong, They will determine the conversion price. It won't be 1.00. Possibly a price very close to current market price. @Ericsson Wrong. That KES 1/- is just that. So if you have 100 shares, you will get KES100 worth of shares If they choose to give the "extra" shares at KES38 then at the end of it all you get 2.xy shares minus taxes. The other KES 1/- will be paid out "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: 12/25/2014 Posts: 2,300 Location: kenya
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mlennyma wrote:enyands wrote:madebe wrote:Pesa Nane wrote:Ericsson wrote:@Madebe and all;
What the script dividend by KCB means is that they will give a bonus issue of 1:1 and ksh.1 dividend.
The bonus shares don't qualify for dividends Ericsson wrote:A rate value per share will be determined to divide by the amount of money i.e ksh.3.025bn to know how many additional shares will be issued and the conversion factor e.g 1 for every 8,7 SIMPLIFIED: if you had 1,000 your dividends will be 2.00*1000*.95= 1,900. you will receive ghalf in cash ie 950/. if they dicided that each share will be 40 bob it means your scrip will be 950/40 which equals to 23 shares. it therefore means that price is the one that will determine if you accept the scrip or take cash dividends...Liberty sold their scrip close to the market price, EABL sold their scrip above the market price and that is how DIAGEO became to own over 50% of EABL I dont think it's a matter of choice . They will impliment it.if it's a matter of choice then it will lead to financial complications. They will handle it above the board.try to imagine sending letters to every shareholder to make a choice ?? Disaster liberty send letters to all of us instructing if you want the shares don't take any action on the letter only those who wanted cash returned it Curious to see how kcb will handle it
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Rank: Veteran Joined: 4/27/2010 Posts: 951 Location: Nyumbani
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madebe wrote:enyands wrote:Ericsson wrote:@murchr,littledove and mlennyama;
The formula is as below;
KCB is to give a dividend of sh.2 per share which translates to ksh.6.05bn if u multiply sh.2 by the number of issued shares of 3.025bn.
Instead they have decided to give ksh.1 in cash and sh.1 in script dividend.
NB:@littledove-shareholder has no choice to choose whether to take script dividend or cash.NOT CORRECT!!!!u have a choice to accept or not!!
The par value of KCB share is ksh.1 and the total number of issued shares is 3.025bn
After giving the ksh.3.025bn as dividend based on sh.1 per share,the balance remaining is ksh.3.025bn.
This ksh.3.025bn instead of giving in cash kcb gives u shares instead.
Divide ksh.3.025bn/sh.1 gives u 3.025bn shares
Divide script dividend of sh.1 by the par value sh.1 gives u 1 which means bonus of 1:1 Again wrong. A scrip is not a bonus. This is why people need to attend George Mangs training on Young NSE investors
Etc eTc etC
So it will be market rate used on the 3.025b to issue shares or will there be a special rate I do not know about this scrip thing . Who is George Mangs am interested
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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@Ericsson. I hope you've understood. @kaish. Muchur and medebe are correct The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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Yield time....wakule kabisa
SCRIP DIVIDEND
Provisional certificate issued (at the option of individual stock/shareholders) by a firm strapped for cash (but having adequate retained earnings) in lieu of cash dividend. It may take the form of (1) a promissory note discountable before its due date, also called liabilitydividend, or (2) common stock (ordinary shares) reflecting capitalization of a part of reserves (retained earnings). Also called capitalization issue, it allows the holders to increase the size of their shareholding without incurring associated costs, and the issuing firm to retain cash for expansion.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Kausha wrote:The Kenya operations unable to convert the loan growth into income is surprising. What many have missed. Plus the huge KES 6.1bn write-off for SS taken below the line. And the 3.7bn increase in Loan Loss Reserve. And the reduction in provisions for 1bn. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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delllatitude wrote:With the huge book value of US dollar loans in South Sudan, coupled with the worsening economy and devaluation of the SS Pound, I wonder how KCB managed to reduce the loan provisions in P&L by 1 billion. It's all about  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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