KA-INVESTOR

  • Safaricom IPO: 7 Days to Go

    Posted: April 17, 2008, 3:51 pm by ka-investor
    Confused investors: there seems to be too much information flowing around (Brokers advert and bank loans) and many investors are left confused on what is right and what isn’t. The fact is, where money is involved the truth is usually the first casualty. Many applicants have been misadvised into taking loans without proper analysis (IPO euphoria), opening multiple accounts to ‘maximize’ on allocations and some are even wondering who’s telling the truth after read caveat emptor on the IPO from ODM and Africog. As Concept will put it, there is too much information noise to understand who is saying it right.
    ‘Undugu’ keeps Tanzanians out: The Bank of Tanzania (BoT) barred Tanzanians against participating in the Safaricom IPO. The main reason being that Safaricom had not made any commitment to cross-listing at the DSE (I believe this could have been done later on). But it’s evident that brokers there are not taking it in good faith. They have questioned the legality of the directive by BoT. And even after the CMA chairman, Jimnah, tried to lure the BoT to rescind on its decision, Kenyan brokers are saying the Tanzanian snub will not dent the IPO hopes. But the rejection by BoT is a clear blow to the regions integration.
    1.65 million applications … and counting: data available at Nation media indicate that over 1.65 million applications have been made for the Safaricom IPO, with 50,000 being online application. Taking into account the enormous amount of applications to be made, I preferred the manual application for my shares over the online one. With the inefficiencies our brokers have I’m skeptical that the online applications will be handled well. But let’s wait and see. One of the leading banks has also issued over ksh15 billion in loans to applicants (could this be Equity bank…and is it the reason behind the recent rally in its share price to Ksh.185?)
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