KA-INVESTOR

  • Another week has opened for the Safaricom ...

    Posted: April 7, 2008, 6:40 pm by ka-investor

    Another week has opened for the Safaricom IPO with more investors rushing to apply for the shares. I hope the number of applications will increase this week as most investors have read the prospectus and sourced for enough funds. Last week was a little bit slow, with most applications coming from non-Kenyans. There are several conflicting analysis on the expected peak for the shares once they hit the trading floor on May 9th. But my prediction is the price will settle some where between Ksh.10 and Ksh.15.

    Applicants who have been going for loans being hawked by banks for the IPO have learned the tricks of the banks to reap them off. Apart from the interest being charged on the loans, loan applicants have to incur several hidden charges before the loan is awarded. Some of the banks claiming to finance 100% of the IPO application are forcing applicants to open new CDS accounts with them, hence cashing in on the transaction charges too.

    In Uganda, investors are wary of the Safaricom IPO citing the political uncertainness of Kenya. For a country like Uganda that is quite used to violence than Kenya, it’s really ironical. Most Ugandans are in favour of alternative investments on the Uganda Securities Exchange such as the Uganda Clays rights issue that ended just before Easter and the upcoming New Vision rights issue.

    In other developments:
    - Gold production at Lolgorien, Kenya, by Goldplat Plc. (a UK firm that specialize in producing precious metals like gold, silver and platinum group metals, on the African continent) may commence in the second half of 2008.
    -The Uganda Securities Exchange (USE) is planning to immobilize their listed companies share certificates so as to increase on the bourse liquidity. Similarly several firms are set to have rights issues and stock splits to increase on the share supply at the USE.
    - ZTE Corporation, China's largest listed telecommunications manufacturer and wireless solutions provider, has signed a deal with the Kenya government to construct an optical network covering the western part of Kenya.

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Fish cakes

Alas a fish cake.

Yet more fish cakes

Guess what ... yeah ... fish cakes.

The end of the fish cakes

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