We have been receiving gloomy news throughout this week. Ooh fuel prices up, food prices up and power bill heading north. Until today. Despite the gloom in the economic front, Shelter Afrique’s corporate bond has been fully subscribed. Yes, the housing development financier was able to raise KSh2.5 billion.
The Business Daily says the banks took up 47.2% of the bond followed by institutional investors who bought 42.9% and retail buyers who were allocated 9.9% of the medium-term paper. The point was it was fully subscribed in an environment that is not very optimistic.
While comparing the Shelter Afrique to the recent British American IPO is like comparing two different companies and processes (aka apples and oranges), I am tempted to ask; Is this a sign of things to come for the British American IPO?
Honestly, I do not know and I am also waiting for results of the subscription as eagerly as you. However, all indications and reports indicate that it was headed for a subscription when it closed on August 5th.
All I know is one thing. No matter the dipping of the NSE share index, the market has the appetite for good investments. And British American IPO was such an investment.