Subscribers in the coming Safaricom IPO will now be able to make their applications on-line. This is expected to reduce the work load and queues at the brokers’ offices. But already the site is inaccessible only two days after being launched. Then again with the ‘computer problems’ KNEC has been having over last year KCSE results, I’m really worried with what kind of short comings we should expect from this on-line application system. I hope it works out well.
The IPO is widely expected to be oversubscribed by over 200% with cold tusker even giving a detailed projection of how this could happen. The IPO is expected to atrract over a million applications from all over the world.
As much as retail investors would have wished for the Delivery Versus Payment (DVP) Method to be applied on all subscribers, this will not be possible and they have been left out to run around after their refunds for the next few weeks after the IPO. Luckily, incase of an oversubscription the shares will be allocated pro-rata and if the oversubscription is over 200% some of the share allocated to foreign investors will be ploughed back to the local investors.
My caution goes to anyone hoping to buy into the IPO using a bank loan, which most banks are more than willing to give out. CCsf had a very appealing Safaricom IPO leverage product last year, but I’m unsure if they still have it on offer this time.
1 comment:
very good blog, congratulations
regard from Catalonia Spain
thank you
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