@ starting over,et all

You are actually right. I bought 50,000 Olympia rights at 0.5 through my broker (this cash went to the person who sold those shares through NSE) and then topped up 700,000k which was paid to Olympia at the rate of 14/= per share.

It's also possible to convince a friend to renounce his/her shares for you to take them up and in this case after you sign some forms you'll only pay the base price 70/= to NIC.

If you buy the rights through NSE and pay for them by the date of closure you'll get all the shares even if their is an oversubscrition. In my case I got the whole lot although it was oversubscribed since I had already bought the rights to purchase the said shares at the stated price.

I think someone wants to benefit and is not stating all the facts as they are.

The premium goes to the original owner of the rights (normally stated as NIC rights on the NSE price list) and only the base price (70/= in this case) will go to NIC. This means 100/= to the original owner and then a further 70= to be paid to NIC.

I hope i've clarified abit

Bignil,

I suggest you either correct your post or delete altogether because it contains false information.  I did participate in OCHL rights and the process was not as you suggest!  I need not repeat how the process goes as posts on this thread have already correctly explained it.  Thank you.

Pops

Don sell your rights...imgaine the price is soo high before the bonus,once the bonus checks in you will be seriousy in the money here

That share is rare kabisa,even more than a gold coin...

dear all thanks for your info,its much appreciated. if the rights sell for 100/- i am selling mine definitely!

@pops

Rights give you the priviledge to buy additional shares at usually a lower price. That discount has a value which at the moment for NIC bank is valued at Ksh. 100. so be prepared to purchase the right to buy the share and then buy the share. total cost eventually ksh. 170..,if the current prices are maintained.

IF you are an existing NIC shareholder,then you have the right to buy one share for every five you own at Kshs 70.

You can either buy the right yourself,or sell it on the NSE. If you buy,it will cost you Kshs 70 a share. If you sell,it is currently selling at Kshs 100 a share.

Now,if you dont have NIC shares,you can buy the shares normally on the exchange,or you can buy the right. The right is currently selling at Kshs 100 a share. That means,when you buy the right,you pay Kshs 100 for the premium on the NSE,then you pay NIC Kshs 70 for the share. So total cost of buying right as we speak is  Kshs 170,which si the same as the market price really.

Once you are done,you will qualify for a bonus of 2 shares for every one share you own. This applies for all shares,including right shares.

yes,you pay kshs 99/= (or any other prevailing price of the rights) to the shareholder who has sold it to you,then you will have to pay kshs 70/= to NIC. From the little I know,the right is only to the shareholders who will pay 70/= for each when they decide to take them up,but they can decide that they dont want to take up the rights,so they sell at the price of their choice,i.e transfer the right to you. In that case you buy the rights from him,but then you will now have to pay kshs 70/= per share to the issuer (NIC) bank bringing the cost to kshs 169/=.

I suggest you sell your rights and make that quick money,imagine a whooping kshs 99 per right while your shares remain intact!

bONCH,

Would you or anybody else have similar information on Diamond Trust bank?  I see it is already trading xr.  Thank you.

http://www.nic-bank.com/forms/NIC%20RIGHTS%20INFORMATION%20MEMORANDUM.pdf

Take a gander at that.