I think share consolidation may partly make the share price less volatile. A 10 :1 ratio would make each share about 50 bob.

Too many retail shareholders with 200 shares. Those are the ones that make the stock very volatile. Safcom should get rid of them... Maybe redeem their shares with bonga points.

ha ha ha.

If share consolidation happen and safcom win this tarrif war. It will be in the same level as BAT in terms of dividend.

First of all safcom shares can't be consolidated according to CMA rules and regulations.... Secondly due to recent events safcom shares are currently expensive and even more so after books closure....

I want to see How long investors will want to stay married to this counter

@GNN ....aka Grandstone Ngunjiri Njung'e......

We are not dreaming.....laws are not permanent...they can be ammended to suit the raging patterns...poloitical or economic...CMA is not a thick head either...i believe share consolidation and share buy backs are long overdue CMA ammendments needed to boost the NSE to another level!!

Kwani tutabaki this way mpaka lini??

Wapi stella kilonzo na mwangi? Na je NSE board members?

I hope mnasoma hii hata kama NSE iko na wenyewe!

someone pls explain how small shareholders make a share volatile. this is one of those "false truths" being bandied around. if i sell 2000 safcon shares at 3bob today, that will have zero effect on the share price, but if a mobitelea-type shareholder sells his 500,000 at 2cents below prevailing price that will definitely move the share price. so pls explain to me like a lil kid how the small guy is the culprit!

lets face it, safcon was overvalued at IPO, more like the tech bubble companies of the late 90's in the west. nothing, not even share consolidation can correct that at this time. ppl will have to pay for their irrational exuberance...me included

Just to add on guru***s comment, large investors are strategically long term small investors no one knows and they are reactive...as is the case now, can you imagine 200k small investors running to sell thier shares in a reactive manner what that will do to the share and moreso its reputation

@guru, ok now i understand, thanks. but how come no one wants to address the issue of overvaluation? that to me is the primary problem. why focus so much on the small issue of small investors. i ll tell u why? its easy and popular.

all the same, lets assume the small guy was such a pain in the neck. who is a small guy anyway (500, 5000, 50,000 or 100,000 shares?). i d like to think that after selling the shares from the ipo he is unlikely to buy again, such that the small guy will gradually disappear and the large institutional investor remains. how will that improve share value if the business value is deteriorating like the case of safcon??

But why should Safaricom spend money doing this.. How will Safaricom as a company benefit? Just why should they do it?

After all the company will still pay out the same amount in dividends (assuming the same level of profitability - which of course would be eroded by the harebrained repurchase by Bonga points scheme)..

This is shareholder concern and if you as a shareholder are this concerned you can solve it by simply mopping up as many shares as you can... effectively getting rid of the "smalltime" shareholders.