jerry wrote:FUNKY wrote:Pesa Nane wrote:Vtumaini wrote:So the 5BN Government Bail Out is
1BN cash from the government &
4BN Rights issue.
Think I got this right?
Unfortunately, you are wrong. It's 5Bn funding from the wananchi ie
1Bn Wanjiku Cash (via tax-money)
4Bn Wanjiku Cash (via rights issue)
Let us first define Wanjiku!
And the price of the Rights will be based on the current trading price?
If they offer them at discounted price of 2.00 per share (13% lower than Thursday's price) then they must float 2 Billion shares so as to raise 4 billion. also remember that 2.00 is the par value for the counter.
If all the rights are taken up, then the number of issued shares will more than double to 3.5 billion shares at a par value of 2.00 bringing the market Capitalization to 7Bn up from 3.6Bn.
with the current market mood and prevailing circumstance for the counter it will be extremely hard to raise such an amount of funds from the shareholders.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'