Official allocation results of Kengen IPO were published today for the shares, which start trading on Wednesday May 17.
Applicants who applied for 500 (will get 500 shares), 1,000 – (812 shares), 2000 – (1,436), 5,000 – (3,309), 10,000 – (6,431) and applicants who applied for more than 10,000 will also receive only 6,431 shares.
Already some lucky investors are planning to cash out at 30/= or 50/= shillings per share within a few weeks of the shares trading.
However, institutional investors, who were short-changed in the allocations, may hold firm and choose to wait out the individual shareholders (burdened by bank and other loans) by holding out to buy at the lowest price, preferably at or below the IPO price of 12/=.
The best performing shares I bought in the last year are Express Kenya and Diamond Trust which have both gained about 78% to date. But they pale in comparison to other shares held for many years such as KCB and Kenya Airways which have only come into their own recently with strong management and direction, and have yielded over 1,000% each, not including dividends.
So it pays to keep the shares over the long term and not to cash out of Kengen this year.