Hisanet Africa Blog

  • Safaricom IPO: General Schedule

    Posted: March 20, 2008, 7:59 pm by admin

    With the confirmation of the Safaricom IPO, these are the facts
    you need to have as an investor;

    IPO Opening Date: March 28th 2008
    IPO Closing Date:   April 23rd 2008
    Price per Share:      Kshs 5.00
    Shares on Offer:      10 Billion
    Target Funds:          Kshs 50 Billion
    Par Value:                 50 cents
    Minimum Shares for local individuals: 2000 Shares.
    Minimum Shares for Corporates: 100,000 Shares.

    Market Value of Company at IPO: Kshs 200 Billion
    Book Value: Kshs 5,813 representing 14% discount
    Market Value at book value: Kshs232.6 Billion
    Trading date in Secondary Market: June 9th 2008.

    Due to the expected rise in demand for the Shilling, strengthening of the
    shilling against other currencies is highly anticipated during this period.
    It is therefore advisable for investors in the Diaspora to consider sending
    in funds sooner before further strengthening of the local currency.

    According to the transaction advisers, the applications for the sale will be online as well as manual; make your choice. The online application is intended to make the whole process more transparent as well as reduce the time spent on processing the applications.

    For online application, investors will be required to log in to www.kenyaipos.co.ke. However, payments will be made to the broker.

    Allocation of the shares is expected to be on a pro-rata basis, meaning that it will be a percentage proportional to the number of shares you apply for.

    Some of the key questions that the offer is raising now are: Given that the number of shares on offer this time round is a massive 10million shares, will investors get a substantial amount of the shares they applied for or is it going to be similar to recent IPO’s where over subscription has led to minimal allocations?

    Another question the IPO is raising is how high the share will go on the first day of trading on 9th of June. And how will floating of these shares affect other counters at the bourse?

    We recommend a strong buy on this counter

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