THE SAFARICOM’S INITIAL PUBLIC OFFER: THE GOVENMENT NEEDS TO DEVISE WAYS TO BRING MORE PEOPLE IN THE BRACKET. BY MUNGAI.

The curtain has fallen for the Safaricom’s Initial Public offer, which was much talked, and most oversubscribed offer. Going by the figure that were released by the Capital Market Authority, revealed that the share offer was oversubscribed by 500 percent.

 

The President hence paring the way for the trading of the share offer launched the initial trading on 9th June

 

But, did the Government learn something from the oversubscribed Safaricom’s share offer? What unfolded from the offer shows that the people do hold a lot of money upon themselves and the Government must devise and find ways of bring that money into circulation. The Government must lure people to invest their money, instead of keeping them; by off loading it’s stakes in some companies and parastatals.

 

But, the credit goes to the N.A.R.C administration because when they took the ruins of power in 2002,they enticed people on how they can broaden their income capital base by investing in stocks, funds, bills and bonds.

 

The long queues that have been witnessed at stockbroker’s offices and the diversity of buyers, leave no doubt that the Country may be on the way to becoming an “Ownership”

Society likes the U.S.A, where 50 percent of the family own stocks. The Government seems determined to admit as many “Small” people as possible into the “Stock ownership club”.

 

The successful precedent initial public offers that have been floated by the Government and different companies over the years indicates that a bug of ownership is still itching the people to invest as it has been received overwhelmingly.

 

Good services delivery and accountability are the major factors that made the Government’s decision to offload some of it’s holding in feel part of the economy and it’s major contributor interms of ownership.

 

But, the biggest mover and shakers started boiling up when the Government decided to offload some of its share capital in the biggest money making company, Safaricom.  A lot of people started gravating of how they can own shares and the savings started at the onset.

 

The initial public offer hasn’t being a smooth affair as it has faced major stumbling blocks on its way.  The first offer was intended to be floated last year, but a real court battle which was pushed by then the opposition wing, that’s some proponents of O.D.M.

 

Their argument was that the Government was pushing its share sale without proper guidelines hence the need for the enactment of privatization act which will constitute the privatization commission.

After a successive court battle, then came the major hurdle which shattered everything that had being moulded – post election violence.  But, at the long last the share offer was floated which was widely received by the masses and it was overwhelmingly subscribed.

The Safaricom’s share offer demonstrated that there’s an area that the Government hasn’t yet tapped which needs to be brought to the table.

The Government needs to bring more small players in the markert. 

 

 

  

 

 


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