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Parastatals that should be listed
Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
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obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. Towards the goal of financial freedom
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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Ebenyo wrote:obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. Ruto should be serious, January ......how? In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/22/2009 Posts: 7,833
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Ebenyo wrote:obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. How was the Safaricom IPO a populist situation. I remember Prof. Anyang' Nyongo displaying his ignorance to the entire country explaining how Safaricom was being sold at a "throw away price" of Kshs. 5/= totally ignoring the number of shares!! I was staring at the TV wondering "Is this guy this clueless or is he just pretending for some reason!!??" Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 9/26/2006 Posts: 463 Location: CENTRAL PROVINCE
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MaichBlack wrote:Ebenyo wrote:obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. How was the Safaricom IPO a populist situation. I remember Prof. Anyang' Nyongo displaying his ignorance to the entire country explaining how Safaricom was being sold at a "throw away price" of Kshs. 5/= totally ignoring the number of shares!! I was staring at the TV wondering "Is this guy this clueless or is he just pretending for some reason!!??" The GoK will need to pull a similar move to rope in Wanjiku.....price it as a penny stock (something below Ksh 1 by creating like 100 billion shares).....If you do a quick comparison between KenGen and KPC you wonder how 65% of KPC can generate 100bn. KenGen is trading at about P/E of 6.....If KPC IPO is offered at same P/E as KenGen, based on Gross Profit of KPC of Ksh 10bn for last year (assume a Net 7bn), then total 100% valuation for KPC lands at 42bn...65% thus becomes about 30bn......so only way to generate 100bn from 65% is to offer IPO at P/E of above 18 which is crazy....can't wait to see the IPO Prospectus. Happy Hunting x handle: @stocksmaster79
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Rank: Elder Joined: 7/22/2009 Posts: 7,833
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stocksmaster wrote:MaichBlack wrote:Ebenyo wrote:obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. How was the Safaricom IPO a populist situation. I remember Prof. Anyang' Nyongo displaying his ignorance to the entire country explaining how Safaricom was being sold at a "throw away price" of Kshs. 5/= totally ignoring the number of shares!! I was staring at the TV wondering "Is this guy this clueless or is he just pretending for some reason!!??" The GoK will need to pull a similar move to rope in Wanjiku.....price it as a penny stock (something below Ksh 1 by creating like 100 billion shares).....If you do a quick comparison between KenGen and KPC you wonder how 65% of KPC can generate 100bn. KenGen is trading at about P/E of 6.....If KPC IPO is offered at same P/E as KenGen, based on Gross Profit of KPC of Ksh 10bn for last year (assume a Net 7bn), then total 100% valuation for KPC lands at 42bn...65% thus becomes about 30bn......so only way to generate 100bn from 65% is to offer IPO at P/E of above 18 which is crazy....can't wait to see the IPO Prospectus. Happy Hunting Seems like Wanjiku atanyolewa bila maji at this rate!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
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MaichBlack wrote:Ebenyo wrote:obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. How was the Safaricom IPO a populist situation. I remember Prof. Anyang' Nyongo displaying his ignorance to the entire country explaining how Safaricom was being sold at a "throw away price" of Kshs. 5/= totally ignoring the number of shares!! I was staring at the TV wondering "Is this guy this clueless or is he just pretending for some reason!!??" They issued so many shares(40 billion) at Kshs 5 each. That's why safaricom NAV is very poor. Towards the goal of financial freedom
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Rank: Elder Joined: 7/22/2009 Posts: 7,833
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Ebenyo wrote:MaichBlack wrote:Ebenyo wrote:obiero wrote:obiero wrote:[quote=ngapat]Where is the prospectus of this ipo It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28[/quote] Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. How was the Safaricom IPO a populist situation. I remember Prof. Anyang' Nyongo displaying his ignorance to the entire country explaining how Safaricom was being sold at a "throw away price" of Kshs. 5/= totally ignoring the number of shares!! I was staring at the TV wondering "Is this guy this clueless or is he just pretending for some reason!!??" They issued so many shares(40 billion) at Kshs 5 each. That's why safaricom NAV is very poor. Number of shares don't affect the actual value of the company. The only question is how many shares are offered and at how much. 40 billion shares at 5/= each, 20 billion shares at 10/= each, 10 Billion shares at 20/=, 1 billion shares at 200/= each absolutely no difference (apart from perception and liquidity if the shares are too few or too many). But the underlying value remains the same and NAV vis - a - vis the offer price. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,833
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And what matters most is EPS and DPS. If Safaricom's DPS is 10/=, majority would not care about how many shares it has. Same if the DPS was 0.1/= Ask most people here how many shares Equity, KCB, BAT, Stanchart etc. have. Some are shareholders and they neither know nor care. And those who do probably the original reason was for them to calculate EPS and DPS from scratch (assuming the information was not readily available or they wanted to do their own math!) Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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MaichBlack wrote:And what matters most is EPS and DPS.
If Safaricom's DPS is 10/=, majority would not care about how many shares it has. Same if the DPS was 0.1/=
Ask most people here how many shares Equity, KCB, BAT, Stanchart etc. have. Some are shareholders and they neither know nor care. And those who do probably the original reason was for them to calculate EPS and DPS from scratch (assuming the information was not readily available or they wanted to do their own math!) True. Dividend yield is favored by most, followed closely by EPS
KQ ABP 4.26
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Rank: Elder Joined: 7/22/2009 Posts: 7,833
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obiero wrote:MaichBlack wrote:And what matters most is EPS and DPS.
If Safaricom's DPS is 10/=, majority would not care about how many shares it has. Same if the DPS was 0.1/=
Ask most people here how many shares Equity, KCB, BAT, Stanchart etc. have. Some are shareholders and they neither know nor care. And those who do probably the original reason was for them to calculate EPS and DPS from scratch (assuming the information was not readily available or they wanted to do their own math!) True. Dividend yield is favored by most, followed closely by EPS True!!! I have also become like @vvs and many more here. I am not a trader. I don't want to have to sell to make money. I love dividend paying shares. That way if the Fundamentals are okay, I don't have to worry so much about price swings (unless I am buying or want to sell). All I need to know is that every year I expect dividends of Kshs. xyz which hopefully keep growing. And one of the most important things as you live your life is cashflow. I love passive cashflow/income. And the day you retire, this will be 10 times as important!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 1/3/2007 Posts: 18,342 Location: Nairobi
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MaichBlack wrote:obiero wrote:MaichBlack wrote:And what matters most is EPS and DPS.
If Safaricom's DPS is 10/=, majority would not care about how many shares it has. Same if the DPS was 0.1/=
Ask most people here how many shares Equity, KCB, BAT, Stanchart etc. have. Some are shareholders and they neither know nor care. And those who do probably the original reason was for them to calculate EPS and DPS from scratch (assuming the information was not readily available or they wanted to do their own math!) True. Dividend yield is favored by most, followed closely by EPS True!!! I have also become like @vvs and many more here. I am not a trader. I don't want to have to sell to make money. I love dividend paying shares. That way if the Fundamentals are okay, I don't have to worry so much about price swings (unless I am buying or want to sell). All I need to know is that every year I expect dividends of Kshs. xyz which hopefully keep growing. And one of the most important things as you live your life is cashflow. I love passive cashflow/income. And the day you retire, this will 10 times as important!!!  I&M paid a sweet interim juzi. Always nice to get dividends throughout the year. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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VituVingiSana wrote:MaichBlack wrote:obiero wrote:MaichBlack wrote:And what matters most is EPS and DPS.
If Safaricom's DPS is 10/=, majority would not care about how many shares it has. Same if the DPS was 0.1/=
Ask most people here how many shares Equity, KCB, BAT, Stanchart etc. have. Some are shareholders and they neither know nor care. And those who do probably the original reason was for them to calculate EPS and DPS from scratch (assuming the information was not readily available or they wanted to do their own math!) True. Dividend yield is favored by most, followed closely by EPS True!!! I have also become like @vvs and many more here. I am not a trader. I don't want to have to sell to make money. I love dividend paying shares. That way if the Fundamentals are okay, I don't have to worry so much about price swings (unless I am buying or want to sell). All I need to know is that every year I expect dividends of Kshs. xyz which hopefully keep growing. And one of the most important things as you live your life is cashflow. I love passive cashflow/income. And the day you retire, this will 10 times as important!!! I&M paid a sweet interim juzi. Always nice to get dividends throughout the year. I remain a trader, for now. But will definitely join @vvs strategy at some point, not now.
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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Ebenyo wrote:MaichBlack wrote:Ebenyo wrote:obiero wrote:obiero wrote:ngapat wrote:Where is the prospectus of this ipo
It will be out by next week Time has come. Ruto announces January listing of Kenya pipeline shares the-star.co.ke/news/2026-01-05-ruto-announces-listing-of-kpc-shares-on-nse https://share.google/yrFwFosac5w0SpU28
Going by Ruto sentiments,the pricing will be attractive.However they should avoid a populist situation like 2008 safaricom IPO. How was the Safaricom IPO a populist situation. I remember Prof. Anyang' Nyongo displaying his ignorance to the entire country explaining how Safaricom was being sold at a "throw away price" of Kshs. 5/= totally ignoring the number of shares!! I was staring at the TV wondering "Is this guy this clueless or is he just pretending for some reason!!??" They issued so many shares(40 billion) at Kshs 5 each. That's why safaricom NAV is very poor. 
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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stocksmaster wrote:littledove wrote:https://ntvkenya.co.ke/news/treasury-to-raise-sh100-billion-from-selling-kenya-pipeline/?utm_source=twitter&utm_medium=NTV+SocialsThe National Treasury expects to raise approximately Sh100 billion from the privatisation of the Kenya Pipeline Company (KPC) shares through an initial public offering at the Nairobi Securities Exchange. The Treasury says the proceeds from the KPC sale will be used to fund priority public services and infrastructure. A Sessional Paper on the Privatisation of Kenya Pipeline Company through an Initial Public Offering (IPO), tabled in the National Assembly, shows that the proceeds of the sale will enable the government to raise funds budgeted for in 2025/26, to implement economic and social objectives. ........................ “The company is wholly owned by the government of Kenya, with 99.9 percent shareholding held by the National Treasury and about 0.1 percent by the Ministry of Energy and Petroleum.” The KPC maintains an extensive pipeline network spanning 1,342 kilometres, and in the financial year 2023/24, reported Sh35.4 billion in revenue and a Profit After Tax of Sh6.9 billion, contributing dividends to the National Treasury. The maths is not adding up. Let's do some quick calculations: What we know is that the GoK will list 65% of KPC shares. The net profit for 2024 for KPC was Ksh 6.9bn. If we apportion 65% of this net profit to the public shares to be sold, that adds up to about 4.5bn. If the target is truly to raise 100bn from the 65% stake, that means the IPO share price will be at a P/E of over 22! (Price of 100bn/Attributable net profit of 4.5bn). KenGen for comparison is trading at a trailing P/E of below 7 making the potential KPC IPO offer share price three times more expensive. If the KPC offer is to be sold at same market metrics as Kengen (Price per earnings of about 7), then the realistic cash to be generated for a 65% sale of KPC based on an annual net profit of about Ksh 7Bn would be 1/3rd of that 100bn....about Ksh 30-33bn. Happy Hunting Par value of two cents is telling a tale
KQ ABP 4.26
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Rank: Chief Joined: 1/3/2007 Posts: 18,342 Location: Nairobi
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obiero wrote:stocksmaster wrote:littledove wrote:https://ntvkenya.co.ke/news/treasury-to-raise-sh100-billion-from-selling-kenya-pipeline/?utm_source=twitter&utm_medium=NTV+SocialsThe National Treasury expects to raise approximately Sh100 billion from the privatisation of the Kenya Pipeline Company (KPC) shares through an initial public offering at the Nairobi Securities Exchange. The Treasury says the proceeds from the KPC sale will be used to fund priority public services and infrastructure. A Sessional Paper on the Privatisation of Kenya Pipeline Company through an Initial Public Offering (IPO), tabled in the National Assembly, shows that the proceeds of the sale will enable the government to raise funds budgeted for in 2025/26, to implement economic and social objectives. ........................ “The company is wholly owned by the government of Kenya, with 99.9 percent shareholding held by the National Treasury and about 0.1 percent by the Ministry of Energy and Petroleum.” The KPC maintains an extensive pipeline network spanning 1,342 kilometres, and in the financial year 2023/24, reported Sh35.4 billion in revenue and a Profit After Tax of Sh6.9 billion, contributing dividends to the National Treasury. The maths is not adding up. Let's do some quick calculations: What we know is that the GoK will list 65% of KPC shares. The net profit for 2024 for KPC was Ksh 6.9bn. If we apportion 65% of this net profit to the public shares to be sold, that adds up to about 4.5bn. If the target is truly to raise 100bn from the 65% stake, that means the IPO share price will be at a P/E of over 22! (Price of 100bn/Attributable net profit of 4.5bn). KenGen for comparison is trading at a trailing P/E of below 7 making the potential KPC IPO offer share price three times more expensive. If the KPC offer is to be sold at same market metrics as Kengen (Price per earnings of about 7), then the realistic cash to be generated for a 65% sale of KPC based on an annual net profit of about Ksh 7Bn would be 1/3rd of that 100bn....about Ksh 30-33bn. Happy Hunting Par value of two cents is telling a tale Par Value is largely irrelevant. Look at the par value of Apple shares then compare to the par value of your beloved KQ shares. Then compare the price of each Apple share vs KQ share. And the EPS. And the DPS. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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