Mea culpa Eveready
I was wrong in estimating diminished interest in the Eveready IPO. 200,000 Kenyans applied for shares in the company and will each receive about 20% of the shares they applied for.
“Corporates” will only receive, at best, 17% of the shares they applied for, but are assured of much better allocation in the about-to-end Mumias offer which closes on Monday.
Bad loans for shares
I was also wrong that no banks will advance loans for Eveready shares.
This still happens, but with less fanfare/advertising than was seen with the Kengen IPO in March. IPO loans are not that attractive to banks since most offers are over-subscribed leaving borrowers with much fewer shares than they applied for – about 20% allocation on average. Also since Kengen has stuck at about 3X its IPO price and Scangroup (2X IPO price), banks are taking on some risk in undertaking such lending. E.g. Say I took out an unsecured personal loan of 120,000 shillings to buy Kengen shares (for 36 months at 19% interest). After the IPO I’d get 2,000 shares whose value of the past few months has been between 60,000 and 72,000 shillings. Meanwhile I have to pay back 150,000 shillings to the bank over the next three years.
Banks need hawkers
This week my bank ATM confiscated my card since it did not recognize my PIN number. I have not forgotten my PIN but the bank has a new IT system that for some reason only recognizes the original PIN, and not the PIN I had changed to as soon as I got the card months ago.
Anyway, I had to do something I dread doing today – visit/queue in the banking hall. It was a time wasting hour, 10 minutes of which I spent in the wrong line. Some banks have empty halls while others have crowded halls of customers who line up to deposit over the counter money. I got to thinking that maybe the bank should allow hawkers in to do some business and share the profits with the bank. They could sell newspapers, fruit, and airtime. Better yet, banks should stop their ridiculous no mobile calls rule for banking halls. If I have to spend a 1/5 of a working day in the bank, I should be able to do some other business over the phone.
Anyway I will be back in two weeks to collect a copy of my original PIN and resume using the ATM for normal banking
Where can you trade shares?
A rough estimate of the access to stockbroking services reveals that Nairobi (and other urban centers) have an undue advantage over rural folk in terms of stockbroking services. While IPO shares are sold at banks throughout the country e.g. KCB, for normal share trading one has to issue a stockbroker.
Like with urban bank customers (who are net borrowers) compared to rural customers (who are net savers) the rural shareholders are at a disadvantage in their access to stockbroking services. On the other hand, they trade much less (earn less commissions) than urban shareholders – preferring to buy and hold shares for dividends, bonuses and AGM goodies.
All brokers have office in Nairobi (including 3 for CFC and 2 for Suntra) while the rest of the country has brokers spread out as follows: Mombasa (Apex Africa, CFC, Dyer & Blair), Naivasha (CFC), Nakuru (Apex Africa,
CFC, Nyaga), Eldoret (CFC), Kirieni (Apex Africa), Kisumu (CFC), Nyeri (Nyaga), Thika (Nyaga), Machakos (Nyaga).
Recent trend Over the last month, Discount stockbrokers have opened offices in Kisumu, Mumias and Bungoma to facilitate the Mumias share offer.
Wishful thinking about oil
Reading this NY Times story about oil smuggling from Venezuela where oil costs $0.17 a gallon to Brazil where it cost $5 a gallon makes me wish that
when if Kenya strikes oil, the price of petrol will drop from the current $5 a gallon (Kshs. 77/litre) to $0.17 (Kshs. 3/litre)
anon new bank backed by prominent middle east and other corporate investors is hiring human resource manager, IT manager, head of operations, head of corporate banking, head of retail banking, head of risk management head of treasury, head of investment banking, head of finance, head of trade finance, relationship managers, security manager, PR manager, branch managers, tellers,
Apply through Manpower services (K) by 23/12
Executive director at East African business council (Arusha) apply through manpower at firstname.lastname@example.org by Jan 5
Country manager – S. Sudan at family health international. Apply to email@example.com by 29/12
FSD Kenya SACCO-CAP (SACCO capacity building project) credit specialist marketing specialist financially analysts, IT specialist
Apply to firstname.lastname@example.org by 27/12
– planning manager
– Financial accountant
email@example.com by 19/12
– Liability Manager
– Relationship Manager – Assets
– Relationship Manager – Liabilities
– Marketing Relationship Officer (Mombasa)
Details and applications online
Manager procurement at the Kenya civil aviation authority – KCAA
firstname.lastname@example.org by 29/12
Kenya revenue authority
– Senior deputy commissioner: research & corporate planning
– Senior deputy commissioner: legal services
Apply through deloitte at email@example.com by 5/1
Ministry of foreign affairs principal counselor (4) first counselor (11) second counselor (22) first secretary (28) third secretary (64)
Details will online and apply by 12/1
– Account director
– Account manager.
Apply to firstname.lastname@example.org
– Finance director: apply through KPMG at email@example.com by 29/12
– Accountant D/L is 19/12
– Credit manager D/L is 19/12
Account managers (3) D/L is 21/12
Apply to firstname.lastname@example.org
– Site Optimization Supervisor
– VAS Propositions Manager
– Business Analyst – Strategy Implementation– BASI_Nov06_CSP
Details at this site
– Investment officer (directorate of operations)
– Internal auditor (bilingual)
– Translator (English/French) at the corporate secretary department
Apply to email@example.com by 15/1
Travel insurance marketer at UAP insurance. Apply to firstname.lastname@example.org by 29/12
Finance director at the world wildlife fund (EARPO – Nairobi). Apply to HResource@wwfearpo.org by 31/12
Opportunity at the Steadman Group for some participants who enroll in an applied research training program at Strathmore business school . Fees are 75,000 shillings and applications can be found at www.steadman-group.com/scrt or www.sbs.ac.ke/scrt. Application deadline is 31/12 and classes begin on 27/1 for the two month program which also includes 2 week research at Steadman
– Kenya Wildlife Services is seeking partners to lease develop and manage tented camps in Western Kenya – at Kisumu impala sanctuary, Ndere island national park and Ruma national park. D/L is 19/1
Earn $17 a day (per bed) by hosting delegates World Social Forum and provide them with bed & breakfast, running water & electricity from January 20 – 25.
Buy a ticket at East African to Mombasa directly from the airline get a second one free (up to 6 January)