when mobile phone tech was introduced in the country the then president received an honorary shareholding in exchange for political goodwill... in both safaricom and kencell..... the safaricom chunk isnow worth about 20 billiob, held thro proxy in a company known as mobitelea, domiciled in the guernsey islands. mobitelea owns part shareholding in safricom thro vodafone kenya in conjunction with vodafone uk.
according to the ksh.5/- valuation, safaricom is worth just over 200 million shillings or just over 3 million dollars.. the shares are being sold at a disounted rate not at par so the valuation could go between 233 and 243 billion shillings, (not quite sure which).
technical details like international v/s local investor ratios are still closely guarded as is the composition of institutional v/s retail investors.
i think safaricom will head south of five bob when it stabilizes because....
one........ it will suck up so much other equity and credit funding that a temporary crunch will be occasioned, meaning that the price of liquidity will go up drawing away those with largesums towards financing those committed especially in the short term
two..... all the hype...... every one and their uncle will go for safaricom, both befoe and after ipo..... it will actually be attractive for institutitonal investors to sell off and double their money, so soon over supply will take its toll.
btw..... anyone know what is going on with kcb...... all tose massive share movements at least two million daily??? the minister says its a vibrant market....... :)
1 comment:
Nice job. The hunger for business information Kenyans have is insatiable. Keep it up.
Ps. The broker in trouble is Nyaga stockbrokers and not Francis Thuo. The later is long gone...sold to the Russian outfit after a similar experience.
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