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Kplc restructure plan out
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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It would make my next monday morning if it opened at 30/= post split
I pray that the current price of 225/= holds, or even goes higher.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Yaani the split is happening today! Niko na KPLC!
BBI will solve it :)
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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guru267 wrote:Sufficiently Philanga....thropic wrote:
True, CMA approved the restructuring on 17th Nov 2010,and a rights issue offer at 19.5 post split or 202.8 pre split, cant wait myself to see how the mkt responds to this!
@suffuciently you crack me up... kwani where did you go to school???  19.5 post split is equivalent to 156 [pre split] not 202.8 Soo True! Sorry, i added some 30% premium to arrive at 202.8! I cant agree more! @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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2012 wrote:Sufficiently Philanga....thropic wrote:Power headed for 200 bob!
supposing the rights come at KES 18.50, that would be KES 148 pre split, and assuming we are talking 30% discount, then we are looking at not buying this stock currently at more than 192.
Looks like the price of this stock is slowly sliding to this figure! You must be kicking yourself vibaya right now... Actually, i didnt want it to go that low since. I've been buying and selling this stock. My last buy was at 225, only wish i picked some at205 like you! @SufficientlyP
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Sufficiently Philanga....thropic wrote:
Actually, i didnt want it to go that low since. I've been buying and selling this stock. My last buy was at 225, only wish i picked some at205 like you!
Then let's enjoy the ride from Monday my friend!
BBI will solve it :)
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Money, money, money, money.... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/26/2006 Posts: 439 Location: CENTRAL PROVINCE
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With the rights issue price having been set at Ksh 19.50, and the share currently trading at Ksh 225 (Ksh 28.125 post split), this gives a spread of Ksh 8.60.
The spread will most likely shrink once the current shares go ex rights.
It will be interesting to see the prevailing share price on November 30th and the rights premium price on December 1st.
My prediction would be a share price of Ksh 25 on November 30th and a rights premium price of Ksh 3 - 4.
A capital gain of between 10% to 20% is possible on this counter (depending on ones entry point/strategy) within the next 3 months.
Several strategies are valid for those not currently holding the stock/wanting to increase their stake in KPLC:
1. Buy at current prices (Ksh 28.125) and get approximately 40% additional shares as rights costing Ksh 19.50. The rights allocated can be sold for abt Ksh 3-4 if one does not want to pay for additional shares.
2. Purchase the rights at a premium from the market then pay for them. (If only 5% of the 488M rights trade at the NSE, this will be about 24.4M rights).
3. Purchase a few rights from the market then apply for additional allocation hoping that some shares will be left unsubscribed for. This may be risky if the financiers (banks) get in to finance the rights. I am informed that Equity is planning to finance the public to take up their rights.
4. Purchase the KPLC shares from the market once they go ex-rights.
What is your strategy?
Happy hunting.
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Rank: Elder Joined: 2/10/2007 Posts: 1,587
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stocksmaster wrote:With the rights issue price having been set at Ksh 19.50, and the share currently trading at Ksh 225 (Ksh 28.125 post split), this gives a spread of Ksh 8.60.
The spread will most likely shrink once the current shares go ex rights.
It will be interesting to see the prevailing share price on November 30th and the rights premium price on December 1st.
My prediction would be a share price of Ksh 25 on November 30th and a rights premium price of Ksh 3 - 4.
A capital gain of between 10% to 20% is possible on this counter (depending on ones entry point/strategy) within the next 3 months.
Several strategies are valid for those not currently holding the stock/wanting to increase their stake in KPLC:
1. Buy at current prices (Ksh 28.125) and get approximately 40% additional shares as rights costing Ksh 19.50. The rights allocated can be sold for abt Ksh 3-4 if one does not want to pay for additional shares.
2. Purchase the rights at a premium from the market then pay for them. (If only 5% of the 488M rights trade at the NSE, this will be about 24.4M rights).
3. Purchase a few rights from the market then apply for additional allocation hoping that some shares will be left unsubscribed for. This may be risky if the financiers (banks) get in to finance the rights. I am informed that Equity is planning to finance the public to take up their rights.
4. Purchase the KPLC shares from the market once they go ex-rights.
What is your strategy?
Happy hunting. I have decided for a double prong approach: 1. I have some few shares and I will apply for more rights than my entitlement. I know that in the event of oversubscription, I will still get some few shares if allocation is pro-rata basis. 2. I will buy more rights in the secondary market once they start trading assuming the price does not go beyond 24 bob a piece. 3. I will maximize on number and be cautious on number 2. NB: KPLC will be another EABL
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Rank: Member Joined: 12/31/2006 Posts: 13
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@stockmaster-As always your posts are always very informative. The 5% traded rights sounds about right going by past issues.
From past experience GOK will bring their rights on a pre-arranged day to be picked up by an insider/strategic investor. The rest of us will be left chasing the 5% and paying a premium of kshs 3-4.
As vitu said money,money, money, money.
The window is pretty short so it wll be interesting to see how the market responds.
Is anybody aware whether there will be a greenshoe option as the issue will be oversubscribed.
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Interestingly, the splits will be credited on Wednesday, 24th and the shares available for trading the following day,25th Thur, just in time for the record date of rights issue. dont know whether CDS that is used to be given 2 weeks to credit the shares will be able to pull through in 3 days. The new shares are expected to start trading on 24th Jan next year. So in 2 months, there's great money to be made if you play your cards right................and close to your chest! @SufficientlyP
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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On such a rights issue there is no possibility of an undersubscription... The share has been valued at above 300 and the rights have been priced at 156... This is really lovely because there will be a hustle to get to the right share price Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 1/1/2010 Posts: 518 Location: kandara, Murang'a
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Questions questions questions... @ BGL hats off for that price prediction ages ago. Aint this rights issue limited to current shareholders cos i see no ratios. 2. Do I have to buy a few to get in or its IPO style.. I wanna get in but have no idea how to cos have ZERO kplc.. @VVS need your guidance! And Oh I see Stockmaster here Foresight..
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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gatoho wrote:Questions questions questions... @ BGL hats off for that price prediction ages ago. Aint this rights issue limited to current shareholders cos i see no ratios. 2. Do I have to buy a few to get in or its IPO style.. I wanna get in but have no idea how to cos have ZERO kplc.. @VVS need your guidance! And Oh I see Stockmaster here @gatoho if you get in and buy kplc shares on the market between now and friday you will be eligible for the rights which will equal to about 40% of the shares you buy... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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stocksmaster wrote:
Trust me guru267, the KPLC Share will soon be available at a price below Ksh 200 (post split Ksh 25).
@stocksmaster looks like MR. market did not agree  Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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@stocksmaster. Thanks for your very informative posts that seem to put everything in perspective effortlessly. It is no wonder u are successfull. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Seems there is a chance to buy Cum Rights on Monday for those who do not have shares. Or buy Rights from the Market. If Foreign Funds want sizable chunks then the Premium will be 'high' OR the favored will get the Rights at a lower price while the rest of us will be lenga'd... BTW, the Equity Bank consortium has underwritten 50% of the Rights Offer which means they will push it through EIB (Equity Bank) as well as provide loans... The possibility of an under-subscription is rapidly diminishing... [IMHO, almost zero!] Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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seems EIB are always ahead of the game in geting business ideas, but i am a bit afraid of the percentage of the loan. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Veteran Joined: 10/11/2009 Posts: 1,223
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From my understanding of the whole thing, 'WE' the shareholders have the priority over the proceedings and just incase we are unable to pick up all.... (our allocation + Govt's renounced stake) THEN the Govt is cautious and upto 50% will be taken by Equity & Centum. So, there won't be such a thing as under-subscription. I *BGL* will pickup all and apply for 3X more. I am sure i will get more and nothing to loose since a refund awaits incase i do not get all i have applied for. History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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kyt wrote:seems EIB are always ahead of the game in geting business ideas, but i am a bit afraid of the percentage of the loan. Equity just rocks! They are way ahead of the other Banks! Anyway, what do you mean "i am a bit afraid of the percentage of the loan"? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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