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Page last updated at 16:04 GMT, Monday, 9 June 2008 17:04 UK

Safaricom: Your views

A Kenyan man talk on a mobile phone at a shop selling Safaricom products, Friday, June 6, 2008

Shares in mobile phone firm Safaricom soared as much as 60% on their first day of trading after Kenya's biggest ever stock market flotation.

The stock rose as high as 8 Kenyan shillings ($0.13); (0.06) from a sale price of 5 shillings in trade on the Nairobi Stock Exchange.

The Kenyan government should raise about $833m from the sale of a 25% stake in the company.

BBC News website readers in Kenya express their views on the flotation.


I believe the Safaricom IPO (Initial Public Offering) is an eye opener to many Kenyans on the importance of investing in the capital markets, thus boosting investor confidence which will be particularly good to the economy. Dennis, Nairobi

This was another rip off by the rich, of course facilitated by their government operatives. How do you explain the measly shares that were given to the low-income applicants, against the shares held by rich investors? With share prices now soaring, it is the rich who are smiling all the way to the bank. Nyang'ori, Nairobi

The Safaricom IPO is a reassurance of Kenya's commitment to privatisation. This listing has brought attention to the Nairobi Stock Exchange and made foreign investors interested in the development of Africa's markets. Even with the December 2007 political instability, the Kenyan economy is stable, revenue collection and privatisation will cover government shortfalls. This IPO creates and avenue for SME's (Small and medium enterprises) to list for future IPO's and a begining of serious business in east Africa. Caesar, Thika

The allocation of Safaricom shares was unfare to many poor Kenyans who took out loans only to get 21% of the shares they wanted.This greatly awaited opportunity only benefited the rich. Anyway,the rich will continue getting rich and the poor more poor. Who will rescue us from our selfish leaders? Dominic, Mombasa

The people of Kenya who bought the IPO are not happy with the current situation because the common man who bought a minimum of 2000 shares, was allowed only 21% of those shares, which is really nothing. There is a feeling that the common man was taken for a ride and they feel mistreated by Safaricom. Dennisorero, Nairobi

Today is a landmark in the industry, we have a demand of 400 million shares while what we have in supply is 180 million shares. The highest number we trade is on average 3 million shares. And most people seeking to buy the shares are local farmers. Peter, Thika

It is the big investors who will benefit, as individual investors like me were allocated only 21%. With soaring prices we cannot now afford to buy more shares. It is a pity. Samwel, Nairobi

The initial sale price we expected on the first day was around 15 Kenyan Shillings and we are disappointed that it started on a low price. However we expect it to rise because there will soon be few shares on offer as most of those who purchased cannot trade them since they bought them on bank loans. Banks will not allow trade of the same until the loans are fully paid. I shall watch and may consider selling mine if the price hits 30 Kenyan Shillings. Yusuf, Mombasa

The success of the Safaricom IPO has done our country proud and we can now look forward to an influx of foreign investors after the dark period in our history following the disputed general elections of 2007. Kennedy, Nairobi

I am very disappointed because I did not get all the shares that I had applied for. I have only been allocated 21 percent. I was told the IPO had oversubscribed. Safaricom is a blue chip company and I was hopeful that I would reap benefits. So I got the money out of my savings not to miss out. My plan was to hold on to the shares for about a year then sell them to make a profit but it does not look like this will happen. Tom, Kisumu

I was a strong believer in investing in Safaricom shares because of the Kshs 17m profit it made in 2007. I believed that the price of each share would eventually reach Kshs 100. I believed that everyone who applied was going to get at least the minimum 2000 shares, thereby giving every small applicant the chance to become a big shareholder in Safaricom! Now I am extremely disappointed that the small investor remains small and insignificant while the big investor remains big and visible! The rich remain rich while the poor remain poor! David, Nairobi

The allocations were so biased, so at 8 shillings at the opening day is very fine because we have nothing to lose now that the rich people took the lion's share leaving us with peanuts. Even if it trades at 3 shillings some of us are fine as long as 420 shares we own are what we got. Evans, Nairobi


SEE ALSO
Kenya's Safaricom soars on debut
09 Jun 08 |  Business
Kenya in mobile phone share sale
28 Mar 08 |  Business

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