Another dismal allocation for Eveready applicants as investors are forced to settle for less than 20% of share application following the offer oversubscription. It is now becoming a disappointment to eager subscribers who have to brace the never-ending queues to put in their applications, only to have a larger part of their forwarded funds returned. The allocation gets smaller and smaller with each IPO and investors will soon get wary of channeling their funds this way.
It would be so much better if brokers (or is it the registrars or receiving bank or other transaction advisors, or all) would have a way of telling when the subscription hits 100% mark then close the doors on any more applications. That way, there’d be no chance of oversubscription and all subscribers would get the exact amount applied for. That’s just my suggestion. Others are welcome but the bottom line is, we need some intervention.
Its no wonder Mumias has not received as much a following as the other offers. But then there is just no telling with Kenyans. 2 days to go and everyone comes rushing in doing the last minute stunt.
On the secondary market front, prices have settled back to the yoyo dance, down a few shillings then back again. I sincerely expected a significant correction in the month of December (which would then give me a chance to take position on a number of counters at lower prices) but it just aint happening. Just as a price starts a gradual decline, demand sets in and pushes the price back up.
Kenya Power and Nation media, both having information on possible splits tied to them, were yesterday’s highest climber, up Kshs. 9.00 and 8.00 to close at Kshs. 293 and 218 respectively. Jubilee insurance whose share float is so low and a split would go a long way in increasing liquidity on this counter, was also up Kshs. 8.00 to close at Kshs 309. KCB and Car & General both edged Kshs. 5.00 higher to close at Kshs. 55 and 218 in that order while ICDC, currently trading cum split and dividend closed Kshs 3.00 higher at Kshs. 51.
Standard Chartered captured the largest dip, down Kshs. 8.00 to close at Kshs. 202 while BAT shed Kshs. 5.00 to close at Kshs. 189.
3 comments:
Mke Nyumbani :Todays recipes tomorrows disasters"
ingridents
2 blood stained ole ntimama pangas
1 thieving ruto hand(1992 vintage)
87kgs.of a power hungry raila
1 Nyanza province size grabbed land from uhuru
2oz of mutula's brain(that defended kanu for more than 15 years)
1/4 pound kalonzos diplomatic dawa
5 drops of tribal hatred at every press confrence
3 ounces of wit and headline grabbing antics
2 scoops of daily standard propaganda
1 doze of slanted ktn reporting
4 demonstrations &
3 secret trips to britain to seek instructions and award future government contracts
instructions
Add all the ingridents into a Bowl of Political Rallies.
Stir carefully and ask no deep questions. and bake for 3 years
presentation
4 foreign diplomats to give it a scent of legitimacy 10 african diplomats to give it continuental credit ,sprinkled with some remaining ktn slanted reporting ,glazed with an extra schoop of standard propaganda .
AND YOU HAVE AN ORANGE DISASTER CAKE
WARNING;
(in small print)
Consume quickly dont ask important question Now.
Ask when we are in power fighting over the next MOU.
Political ideologies and public policies not required .
Development cannot be garanteed.
@ Hisagal:
Sad about the eveready allocations. As for your idea, sounds interesting, though you can imagine an announcement of 80% full would see a stampede at brokerage houses! I'm thinking higher pricing or higher limits for number of shares, might reduce numbers, but as of now, guys are hooked!!!
As for the market, most counters are at the dip so good time for some nice buys.
@Anon: wrong blog to put your comment...
Mwasjd, i dont think going for higher pricing would be the best way to go coz then you would be cutting out a large number of kenyans from picking the shares. the low price gives kenyans from low inocme earning groups a chance to invest. I still feel it would be much better to imply a first come first served scenario.
Post a Comment