https://ir.citi.com/K48NmnoXhQiTE4FHzCmUD9%2F8fcRugHm76eyZA4lXT9lx5Hml4Yil9g%3D%3DEquity increase details to be released by July
—
We continue to model a US$400m (KSh 41.4bn) equity rights issue, which would increase share count 5
-fold at the current share price,more if discounted, heavily diluting existing
shareholders.This would enable Kenya Airways
to repay KSh25bn bridging loan
from the Government and Afreximbank and maintain cash at c.30% of revenue. Our EPS estimates will depend critically
on the terms of the rights issue. We expect the Government
(29.8%holder) and KLM (26.7%) to take up their rights.
There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope