NAIROBI STAR Monday,9 June 2008 STAR BIZ - · PDF fileKCC received the halal certifi cation...
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BY LOLA OKULO NEW Kenya Cooperative Creameries is now eyeing the international market for halal products after receiving certification from the Kenya Bureau of Standards. Halal refers animal products which are lawful according to the Islamic laws. KCC received the halal certification following inspection of its milk processing procedures to ensure that they conformed to the Islamic dietary laws. According to the laws, ordinary milk may contain rennet (curdled milk from an unweaned calf) which has animal and vegetable sources. The Muslim’s concern is that the milk which is not certified halal, may have rennet from animals not acceptable in Islamic law. New KCC’s managing director Francis Mwangi said that owing to the impressive growth of the global halal market and the rising demand for halal compliant products, the company would seek ways to increase its market share in this section. “New KCC has successfully established export markets in Yemen, Saudi Arabia, United Arab Emirates and Oman,” Mwangi announced. BY PETER KIRAGU REFUND process for the Safaricom IPO kicks off today, the same day its shares begin trading in the Nairobi Stock Exchange. Finance minister Amos Kimunya disappointed investors last week when he announced that the retail ones would get only 21 per cent of the shares that they had applied for. The question in the minds of most retail investors now is where and how they will get their refunds. According to Capital Markets Authority acting chief executive Stella Kilonzo refunds shall only be processed in accordance with the investors’ preferred option as provided for in the Safaricom IPO prospectus. Applicants were supposed to indicate the preferred method of receiving their refunds by ticking the appropriate box on the application form. “Due to the oversubscription of the Safaricom IPO, applicants will not receive the full amount of what they applied for. In this regard, all those who applied for the IPO will be entitled to a refund with effect from June 9, 2008,” said Kilonzo in an advert last Friday. According to the prospectus, one way through which the refunds would be settled is by Electronic Funds Transfer to the bank account of the investor as given in the application form. The prospectus notes that if requested, or if bank details are not provided, a default refund cheque will be delivered through the authorised selling agent through whom the application was lodged. Selling agents include stockbrokers, investment banks or any other central depository agent. “EFTs will only be credited to accounts held at commercial banks. In the event that an EFT fails, a refund cheque will be sent in its place and delivered through the authorised selling agent through whom the application form was submitted,” reads the prospects on the refunds policy. Kilonzo said cheques would only be eligible to be paid to the account of the named person, with no provision for third party endorsements. “Any investor receiving a refund cheque, who does not have a bank account, should proceed to open one as this will greatly facilitate their future involvement in the capital markets including receiving prompt IPO refunds and dividend payments,” Kilonzo advised. Can YOU outsmart the expert? 12 NAIROBI STAR ★ Monday,9 June 2008 Up to date, accurate business information NEWS YOU CAN USE, EVERY DAY. Today, the bell will be rung and Safaricom will finally start trading at the Nairobi Stock Exchange. The bourse was born in a bygone era, in 1954, when we were still a British colony. Africans and Asian were only allowed to trade in listed securities after Kenya attained Independence. Today, there are around 1.5 million investors at the bourse. We are sitting at the cusp of a revolution. It is a little like having played little league for years and then suddenly finding yourself at the European Cup final. We have come a long way and it has only just started. The value of the stock market is Sh972 billion, as at Fridays close. That is $15.5 billion. (A single trader at Societe Generale lost $7b, to give some perspective). At its issue price, Safaricom is valued at just above Sh200 billion. If we get a 50 per cent appreciation (I expect more), Safaricom will be worth Sh300 billion and 23.58 per cent of the bourse. It is set to have a significant impact. Trading volumes will surge. I have an absolute conviction that the share price will appreciate and therefore, the bourse is set to embark on a very powerful bull rally. Frontier markets (Kenya falls into this category) are now considered an asset class on their own. Think of pre-emerging markets. Frontier markets are receiving unprecedented investment attention, especially because they are considered as uncorrelated to Western economies. Safaricom is the hors d’ouevre that we are serving, to get investors to look at the rest of the menu. Earlier this year in March, I suggested a model portfolio. Aly-Khan Satchu www.rich.co.ke is the author of Anyone Can Be Rich, available in local bookshops Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions. HOW IPO BUYERS WILL GET REFUNDS KCC to sell products to Muslim states ALY KHAN’S STAR PORTFOLIO STAR BIZ SAFARICOM IS JUST THE APPETISER FOR BOURSE DISSAPOINTED: Most retail investors have been dissapointed by the shares allocated to them. ▼ RICH STAR PORTFOLIO Buy Price Invest (Sh) Shares Equity Bank 142.00 50,000 = 352 shares Access Kenya 24.75 20,000 = 808 shares ARM 95.50 15,000 = 157 shares Sasini 14.55 15,000 = 1030 shares Access Kenya 24.75 50,000 = 2020 shares Total cost Sh150,000 The current valuation is as follows Equity Bank 352 shares x 296.00 = 104,192.00. Access Kenya 2828 shares x 34.25 = 96,859.00 ARM 157 x 103 = 16,171.00 Sasini 1030 x 15 = 15,450.00 Total Value Sh232, 672.00. This recommended portfolio has returned 232,672.00 -150,000 = +55.11 per cent. Annualised that is 220.44 per cent. I rest my case. BY LOLA OKULO BARELY a week after the Nairobi star questioned the viability of Safaricom’s free calls promotion, the mobile phone company has now adjusted the calling hours for the service. Following numerous complaints from customers over network congestion, the promotion will now start at 11pm and not 9 pm as before. Nairobi Star broke the story last Tuesday after receiving complaints from subscribers that their calls could not go through at night because of the jam caused by the service. Safaricom responded by requesting their subscribers to reduce their calling frequency between 9pm and 10pm which was identified as the period when the problem was at its worst. “Safaricom will adjust the timing of the on-going call free promotion to start from 11pm to 6am.This is due to the overwhelming response to the promotion by subscribers that has resulted to network overload, prompting the firm to adjust the free-call start time from 9pm to 11pm,” said a statement from the company. But the move has not gone down well with some customers who complained that the timing was not appropriate to make calls. “The promotion may as well get cancelled because calling someone as late as eleven is just absurd,” said Jack Njiru, a Safaricom subscriber. Safaricom CEO Michael Joseph said the move was taken to ease congestion on the network. “What we did not anticipate is that most subscribers registered in the promotion, would all make calls at the same time – usually between 9pm and 9.30pm,” said Joseph. Safaricom cuts free calls’ timing
Transcript of NAIROBI STAR Monday,9 June 2008 STAR BIZ - · PDF fileKCC received the halal certifi cation...
BY LOLA OKULO
NEW Kenya Cooperative Creameries is now eyeing the international market for halal products after receiving certifi cation from the Kenya Bureau of Standards.
Halal refers animal products which are lawful according
to the Islamic laws. KCC received the halal certifi cation following inspection of its milk processing procedures to ensure that they conformed to the Islamic dietary laws.
According to the laws, ordinary milk may contain rennet (curdled milk from an unweaned calf) which has
animal and vegetable sources. The Muslim’s concern is
that the milk which is not certifi ed halal, may have rennet from animals not acceptable in Islamic law.
New KCC’s managing director Francis Mwangi said that owing to the impressive growth of the global halal
market and the rising demand for halal compliant products, the company would seek ways to increase its market share in this section.
“New KCC has successfully established export markets in Yemen, Saudi Arabia, United Arab Emirates and Oman,” Mwangi announced.
BY PETER KIRAGU
REFUND process for the Safaricom IPO kicks off today, the same day its shares begin trading in the Nairobi Stock Exchange.
Finance minister Amos Kimunya disappointed investors last week when he announced that the retail ones would get only 21 per cent of the shares that they had applied for.
The question in the minds of most retail investors now is where and how they will get their refunds.
According to Capital Markets Authority acting chief executive Stella Kilonzo refunds shall only be processed in accordance with the investors’ preferred option as provided for in the Safaricom IPO prospectus.
Applicants were supposed to indicate the preferred method of receiving their refunds by ticking the appropriate box on the application form.
“Due to the oversubscription of the Safaricom IPO, applicants will not receive the full amount of what they applied for. In this regard, all those who applied for the IPO will be entitled to a refund with effect from June 9, 2008,” said Kilonzo in an advert last Friday.
According to the prospectus, one way through which the refunds would be settled is by Electronic Funds Transfer to the bank account of the investor as
given in the application form. The prospectus notes that
if requested, or if bank details are not provided, a default refund cheque will be delivered through the authorised selling agent through whom the application was lodged. Selling agents include stockbrokers, investment banks or any other central depository agent.
“EFTs will only be credited
to accounts held at commercial banks. In the event that an EFT fails, a refund cheque will be sent in its place and delivered through the authorised selling agent through whom the application form was submitted,” reads the prospects on the refunds policy.
Kilonzo said cheques would only be eligible to be paid to the account of the named person,
with no provision for third party endorsements.
“Any investor receiving a refund cheque, who does not have a bank account, should proceed to open one as this will greatly facilitate their future involvement in the capital markets including receiving prompt IPO refunds and dividend payments,” Kilonzo advised.
Can YOU outsmart the expert?
12 NAIROBI STAR ★ Monday,9 June 2008
Up to date, accuratebusiness information
NEWS YOU CAN USE, EVERY DAY.
Today, the bell will be rung and Safaricom will fi nally start trading at the Nairobi Stock Exchange. The bourse was born in a bygone era, in 1954, when we were still a British colony. Africans and Asian were only allowed to trade in listed securities after Kenya attained Independence.
Today, there are around 1.5 million investors at the bourse. We are sitting at the cusp of a revolution. It is a little like having played little league for years and then suddenly fi nding yourself at the European Cup fi nal. We have come a long way and it has only just started.
The value of the stock market is Sh972 billion, as at Fridays close. That is $15.5 billion. (A single trader at Societe Generale lost $7b, to give some perspective). At its issue price, Safaricom is valued at just above Sh200 billion.
If we get a 50 per cent appreciation (I expect more), Safaricom will be worth
Sh300 billion and 23.58 per cent of the bourse.
It is set to have a signifi cant impact. Trading volumes will surge. I have an absolute conviction that the share price will appreciate and therefore, the bourse is set to embark on a very powerful bull rally.
Frontier markets (Kenya falls into this category) are now considered an asset class on their own. Think of pre-emerging markets. Frontier markets are receiving unprecedented investment attention, especially because they are considered as uncorrelated to Western economies.
Safaricom is the hors d’ouevre that we are serving, to get investors to look at the rest of the menu.
Earlier this year in March, I suggested a model portfolio.
Aly-Khan Satchu www.rich.co.ke is the author of Anyone Can Be Rich, available in local bookshops
Shares go up and down and readers are advised that this column represents Mr Satchu’s personal opinions.
HOW IPO BUYERS WILL GET REFUNDS
KCC to sell products to Muslim states
ALY KHAN’SSTAR
PORTFOLIO
Can YOU outsmart the expert? HOW IPO BUYERS STAR BIZ
SAFARICOM IS JUST THE APPETISER FOR BOURSE
DISSAPOINTED: Most retail investors have been dissapointed by the shares allocated to them.
▼ RICH STAR PORTFOLIO Buy Price Invest (Sh) Shares
Equity Bank 142.00 50,000 = 352 shares Access Kenya 24.75 20,000 = 808 sharesARM 95.50 15,000 = 157 sharesSasini 14.55 15,000 = 1030 sharesAccess Kenya 24.75 50,000 = 2020 sharesTotal cost Sh150,000
The current valuation is as follows
Equity Bank 352 shares x 296.00 = 104,192.00.Access Kenya 2828 shares x 34.25 = 96,859.00 ARM 157 x 103 = 16,171.00 Sasini 1030 x 15 = 15,450.00Total Value Sh232, 672.00.
This recommended portfolio has returned 232,672.00 -150,000 = +55.11 per cent. Annualised that is 220.44 per cent. I rest my case.
BY LOLA OKULO
BARELY a week after the Nairobi star questioned the viability of Safaricom’s free calls promotion, the mobile phone company has now adjusted the calling hours for the service.
Following numerous complaints from customers over network congestion, the promotion will now start at 11pm and not 9 pm as before.
Nairobi Star broke the story
last Tuesday after receiving complaints from subscribers that their calls could not go through at night because of the jam caused by the service.
Safaricom responded by requesting their subscribers to reduce their calling frequency between 9pm and 10pm which was identifi ed as the period when the problem was at its worst.
“Safaricom will adjust the timing of the on-going call free promotion to start from
11pm to 6am.This is due to the overwhelming response to the promotion by subscribers that has resulted to network overload, prompting the fi rm to adjust the free-call start time from 9pm to 11pm,” said a statement from the company.
But the move has not gone down well with some customers who complained that the timing was not appropriate to make calls.
“The promotion may as well get cancelled because
calling someone as late as eleven is just absurd,” said Jack Njiru, a Safaricom subscriber.
Safaricom CEO Michael Joseph said the move was taken to ease congestion on the network.
“What we did not anticipate is that most subscribers registered in the promotion, would all make calls at the same time – usually between 9pm and 9.30pm,” said Joseph.
Safaricom cuts free calls’ timing
