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Topic: Rights - StartingOver  [1,185 views | 20 replies]
Monday, October 15, 2007 18:40
Just read a report that NIC bank launced a one-five rights issue today with the rights shares going for kshs 70.  Does any one know if they will be trading in rights like they did with olypmpia capital holdings?  I would like a share of the stock,but I am no a share holder currently and would like to buy rights if they are available.
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The big rip off from mombasa rd [myson]
Monday, October 29, 2007 11:02;=0
Quite Right [nyari]
Monday, October 29, 2007 09:15

@ starting over,et all

You are actually right. I bought 50,000 Olympia rights at 0.5 through my broker (this cash went to the person who sold those shares through NSE) and then topped up 700,000k which was paid to Olympia at the rate of 14/= per share.

It's also possible to convince a friend to renounce his/her shares for you to take them up and in this case after you sign some forms you'll only pay the base price 70/= to NIC.

If you buy the rights through NSE and pay for them by the date of closure you'll get all the shares even if their is an oversubscrition. In my case I got the whole lot although it was oversubscribed since I had already bought the rights to purchase the said shares at the stated price.

I think someone wants to benefit and is not stating all the facts as they are.

The premium goes to the original owner of the rights (normally stated as NIC rights on the NSE price list) and only the base price (70/= in this case) will go to NIC. This means 100/= to the original owner and then a further 70= to be paid to NIC.

I hope i've clarified abit

Rights [StartingOver]
Friday, October 26, 2007 17:13


I suggest you either correct your post or delete altogether because it contains false information.  I did participate in OCHL rights and the process was not as you suggest!  I need not repeat how the process goes as posts on this thread have already correctly explained it.  Thank you.

Rights [Layman]
Friday, October 26, 2007 14:01

bgnill,you need someone to educate you a little on stocks,ask if you dont know. What you are saying is what a std two pupil in a rural school knows about stocks. maybe you need to ask someone who has participated in the rights issue,but the best you can do is ask your broker (if you have any because I doubt if you trade in shares)

The future is already here!
confusing [Lawman]
Friday, October 26, 2007 13:22

bgnill - you are confusing!! elaborate again citing previous examples
Rights [bgnill]
Friday, October 26, 2007 12:29

hi guys,the rights go this way,if you dont want your right you can place a sale order with your broker,the person who buys the right will have  a part of his money sent to nic if you buy at 100 only 70/= will go to nic the 30 bob is your profit. simply the buyer of your rights has bought your ' liability' with NIC at that price. should the right be sold at a price lower than the investment bank undertaking the transaction will top up.

no one has all the ideas and information sharing is certainly the way forward
DONT SELL [KulaRaha]
Thursday, October 25, 2007 18:04


Don sell your rights...imgaine the price is soo high before the bonus,once the bonus checks in you will be seriousy in the money here

That share is rare kabisa,even more than a gold coin...

Business opportunities are like buses,there's always another one coming
Rights [pops]
Thursday, October 25, 2007 15:50

dear all thanks for your info,its much appreciated. if the rights sell for 100/- i am selling mine definitely!

Rights!!!! [emem]
Thursday, October 25, 2007 14:49


Rights give you the priviledge to buy additional shares at usually a lower price. That discount has a value which at the moment for NIC bank is valued at Ksh. 100. so be prepared to purchase the right to buy the share and then buy the share. total cost eventually ksh. 170..,if the current prices are maintained.

Thursday, October 25, 2007 14:36

IF you are an existing NIC shareholder,then you have the right to buy one share for every five you own at Kshs 70.

You can either buy the right yourself,or sell it on the NSE. If you buy,it will cost you Kshs 70 a share. If you sell,it is currently selling at Kshs 100 a share.

Now,if you dont have NIC shares,you can buy the shares normally on the exchange,or you can buy the right. The right is currently selling at Kshs 100 a share. That means,when you buy the right,you pay Kshs 100 for the premium on the NSE,then you pay NIC Kshs 70 for the share. So total cost of buying right as we speak is  Kshs 170,which si the same as the market price really.

Once you are done,you will qualify for a bonus of 2 shares for every one share you own. This applies for all shares,including right shares.

Business opportunities are like buses,there's always another one coming
Rights [Layman]
Thursday, October 25, 2007 14:29

yes,you pay kshs 99/= (or any other prevailing price of the rights) to the shareholder who has sold it to you,then you will have to pay kshs 70/= to NIC. From the little I know,the right is only to the shareholders who will pay 70/= for each when they decide to take them up,but they can decide that they dont want to take up the rights,so they sell at the price of their choice,i.e transfer the right to you. In that case you buy the rights from him,but then you will now have to pay kshs 70/= per share to the issuer (NIC) bank bringing the cost to kshs 169/=.


I suggest you sell your rights and make that quick money,imagine a whooping kshs 99 per right while your shares remain intact!

The future is already here!
Rights [pops]
Thursday, October 25, 2007 14:01

hi layman i dont get you. if i buy the right at 99/- then do i have to pay 70/- again also. i thought hypothetically that if i had a right for 70/- and i take it up,then i get the share also. or is it that i have to pay more for the share. please explain,i have around 1000 shares of nic and i dont quite understand how rights work. are they worth taking up or should i just sell them and wait for safaricom.
Totally agree [youngNrich]
Thursday, October 25, 2007 13:32

I totally agree with you at a price of 99 that translates to 169 and given that currently the share is at a high it does not make sense unless

Never doubt that a small group of thoughtful,committed citizens can change the world. Indeed,it is the only thing that ever has. N we here are eager to change the investment world in kenya
Rights [Layman]
Thursday, October 25, 2007 11:26

If I buy these rights at kshs 99/= and then pay another kshs 70/= to acquire them,that already kshs 169/=,a clear rip-off!

The future is already here!
rights [mabrown]
Wednesday, October 24, 2007 11:18

its not a good buy,if u have rights sel em off

Choks Capital
Rights [StartingOver]
Monday, October 22, 2007 20:23

NIC rights were today trading at khs 54/55 cum bonus.  Is this a good deal to invest in or do we expect these prices to come down especially with the possibility of safaricome coming around soon?  I know we are all drunk with politics lets do some stocks too.
Info [bONCH]
Thursday, October 18, 2007 18:19

I think Diamond... is already a done deal. That horse already bolted!

Is all in the simple things!!
Rights [StartingOver]
Wednesday, October 17, 2007 17:52


Would you or anybody else have similar information on Diamond Trust bank?  I see it is already trading xr.  Thank you.

Thank you [StartingOver]
Tuesday, October 16, 2007 16:21

Thanks bONCH; useful link.
Info [bONCH]
Tuesday, October 16, 2007 10:33


Take a gander at that.

Is all in the simple things!!
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