Frequently Asked Questions
A share is a unit of ownership and for listed company; anybody interest can buy the shares at the stock market at the prevailing market forces. A right is a way through which a company wants to raise capital using its existing shareholders. At the time of allotment, only the existing shareholders who are in the register at record date can qualify to get allotment.
This is an offer to the existing shareholders to subscribe for new issue, usually at a preferential price in proportion to their existing shareholding. For Olympia the rights are 3 new shares for every 1 held at a price of Kshs. 14.00 which represents 31% discount.
The Provisional Allotment letters have indicated allotted shares that one needs to pay for. However, you can apply for additional rights of just buy the rights that will be trading at the Nairobi Stock Exchange within the trading for the period 3rd to 14th September, 2007.
Olympia Capital Holdings Limited, formerly Dunlop Kenya Limited (DKL) was initially established as a branch office of Dunlop UK in Kenya in 1968 then a British multinational to carry out the business of manufacture of vinyl floor tiles, adhesives and sports equipment. In 1970, the company was formally registered in Kenya and got listed at the Nairobi Stock Exchange in 1976.
The rights issue is suppose to give the existing shareholders a chance to maintain their shareholding in the company as the company tries to attract more investment. Because the existing shareholders have preemptive right and a preferential discounted price, it is necessary for a shareholder to participate, otherwise failure to take the right subject the investor to dilution of his / her shareholding stake.
The minimum number of rights you can buy is one hundred.
The NSE is the Nairobi Stock Exchange which is a market like any other market. It is a specific form of a capital market where stocks and bonds are bought and sold unlike other markets where we trade clothes, tomatoes etc.
The company is involved manufacture of vinyl floor tiles, adhesives, PVC floor tiles, aluminum window and floor frame, Industrial Chemicals, curtain trucking and related products
This means Provisional Allotment Letters that is serialized with the names of the shareholders who qualified for the rights and the number of rights they are allotted.
To buy your rights, you need to write bankers check in the name of Olympia Capital Holdings Limited Rights issue or pay through your broker.
The Provisional Allotment Letters allow you to accept only part of the Rights. So, you can apply for only the rights you wish to accept.
This is the last date within which one needs to be in the register to qualify for the rights issue.
You can, the rights will freely trade in the stock exchange with the price subject to the rules of supply and demand. Anybody is free to participate.
Dunlop Industries Limited is subsidiary of Olympia Capital Holdings Limited. In 2004, DKL changed its name from Dunlop Kenya Limited to Olympia Capital Holdings limited.
