Tuesday, July 11, 2006

Alternative NSE

The Nation’s Smart Company magazine looks at the alternative investment market segment of the Nairobi Stock Exchange (NSE) today which includes these companies: A. Baumann, City Trust, Eaagads, Express, Williamson Tea, Kapchorua Tea, Kenya Orchards, Limuru Tea, and the Standard (newspapers) Group.

As the Nation notes only two shares are actively traded – almost on a daily basis; One is Express (I own a few shares) which is a company that has undergone some restructuring and is, I believe, in the right place at the right time with some good growth potential.

The other is the Standard Group which is in a restructuring phase, and though it trails the Nation Media Group in most segments (except television), has some upside predicted for it given its’ daring political coverage and the upcoming election year which is always good for the newspaper industry.

Recent stable changes
In: (soon) Scangroup
Out: Sameer


Mashatall said...

Banks: where can we get the Scangroup IPO share application forms, its ony like a week left before it opens and i cannot find any forms online. Seems like the IPO might just be open to a select few and it might not end up doing so well, but with Dyer and Standard investments underwriting the offer, then they stand to make good money when it starts trading on the NSE. Also was wondering about new NSE electronic trading platform? it it being conducted from the broker's offices? (Nasdaq style), or its automated but with outcry system? (NYSE style)?

Kagz said...

I agree with Mashatall.

Whats the 411 with The Scangroup IPO and why was it opened for such a short time?
Is there any regulation on the length of an IPO?

Unless i missed out on a previous post,which are Kenya's hottest shares/stocks?...i.e guaranteed ROI.

Lastly, are there any companies in Kenya that went public and went back private? E.g of Richard Branson's Virgin Group and thus his best seller..."Losing My Virginity"

Ig-know-rant said...

Banks, any idea/link to a soft copy of the Scangroup IPO Prospectus? They haven't posted it on their website and the brokers haven't done the same either, unlike what thye didi with Kengen.

Kagz said...

To Mashatall & Ig-know-rant

For the Scangroup IPO prospectus & more info, check out www.kenyanentreprenuer.blogspot.com

The post is titled "The Nairobi Stock Exchange"

This means he/she has a soft copy so you can either comment on his/her blog or write him/her an email.

Looks like a good opportunity...tho i'm still concerned about the short duration of the IPO.

Wish you guys all the best...& if you become rich and famous, pliz remember my 0.00000002% contribution.

coldtusker said...

@Mashatall - patience bwana/bibi... www.scangroup.biz & wait till Jul 17

@kagz - nothing like a guaranteed ROI. Well unless you give it to kirubi or merali. Guaranteed -ve ROI

Short duration keeps costs low (less advertising - ironical!) plus they have 50% underwritten so no need for extra ads coz they will be over-subscribed anyhow...

Kagz said...

To M & I: KE sent me the Scangroup Prospectus so if anyone needs it just holla at(sanebrownlady@yahoo.com)and i'll fwd it to you.

Cold Tusker : ati "be patient and wait".
Je, huu ni ungwana (LOL)

N'way thanx for answering my ques.
This IPO iko na kasoro. They are s'posed to be the KING of Advertising in Kenya and yet people are all over looking for info???

About guaranteed ROI, they say EABL,BBK & Stan Chart shares are the best to buy. True or False?

Anonymous said...

Hi pple,
What is it with E-A cables?? On friday it rose by a massive 20 bob and yesterday by another 25 bob..do you think it will be able to sustain this rise and for how long?

Newcomer said...

Hi good people,
I was adviced to visit bankelele just seeking advice. I got some little cash Ksh 300k. my headache is diversifying shares in such a way that i will gain within next 3years any advice on what shares I can buy like today or near future a month or so Please help!

Anonymous said...

Bankelele,i used the e-mail you had given for an anonymous IT company in need of a financial accountant,but its not going through.
Nini mbaya?
countinue with the good work,very educative.

bankelele said...

Mashatall: Just got a mini-prospectus today

Kagz: Maybe they're sure they will raise the cash, but don't want an over-subscribed crush

Ig-know-rant: soft copies should be cirulating by kesho

coldtusker: I think Merali wants your number :->

Anonymous: EA Cables is a mystery, I think they had good-half year results

Newcomer: Subscribe for IPO's

Anonymous said...

hi guyz
the scangrp prospt n appl form r ready for download. its a 106 pgs prospectus.

Anonymous said...

hi guys?
i think the period for the Scangroup IPO is short and we need a regulation by CMA. These shares will majorly be bought by the corporates hence lock out the pontential individuals who want to buy. The offer is at period when pple have no money.

Bungoma, Kenya

Anonymous said...

Scangroup is open for 10 days only couse that's the CMA regulation - they can seek extension if they require. The issue is small and underwritten hence the period should be ok.

coldtusker said...

@Eliud from Bungoma. The IP is not based on "when people have no money". IPOs have many factors to consider. In any event it is (generally) long-term investing.

The CMA determines the period. Why should they remain "open" for longer if they feel the shares will be taken up sooner?

The government has a role in "expanding" the shareholder base when they are selling shares e.g. KenGen but ScanGroup does not coz it is a PRIVATE company!

The only reason corporates are being favoured ( I don't support it) is that ScanGroup wants to assure the corporates of larger allocations by promising them favored status...

Carrot for the horse... after being bitten during KenGen, the corporates don't want their funds "stuck" for 1 month while they get minor allocations!

An alternate is to have payment made AFTER allocation... the problem is how do you enforce payments afterwards?

Anonymous said...

ive been reading this bankelele blog esp on shares and IPOs and am greatful for the information.Just a quick one,can a person loose when the IPO goes public and what do yu guys outthere think of the scangroup IPO.Will it beat the 62bob or something high for Kengen


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