Round Three of Unashig's capital raising drive, which was expected to start at the beginning of February 2021, was postponed on January 31st in order to allow for fresh Board decisions concerning the pricing of the company's CA and CB shares. Until the postponement, the shares had continued to be sold at the nominal value of KES 2,000/- per share, which was set in late 2018. However, a review of this practice alerted Management to the fact that the average market price was already significantly discordant with the nominal price at which we had been selling the shares. Certainly, the emergence of this mismatch was accelerated by the success of our fundraising in Rounds One and Two in 2020, but it could not be allowed to continue under the radar.
Here are some of the facts, trends and fluctuations that were noted:
1) 31/08/2020: The Market Value of all the 1,639.84 shares outstanding at the time stood at KES 3,246,501/-. This signaled a market valuation per share of KES 1,979.77. However, nothing seemed out of line, even though, in hindsight, we were less than "Two Pounds" away from the KES 2,000/- watershed.
2) A month later, on September 30th, 2020, the Market Value was up by over KES 500,000/- and stood at KES 3,757,253/-, while the number of issued shares was also up -- to 1,785.84. This gave us an average market price of KES 2,103.91 or 5.2% above the nominal value!
3) On October 30th, the market price per share was down to KES 2,044.36, but still remained 2.22% above the nominal value.
4) On November 30th, however, Market Value was again significantly higher, at KES 4.318,242/- -- or KES 2,181.18 per share (a 9.1% rise over the nominal value).
5) But on December 31st, 2020, Market Value per share dropped to KES 2,051.63, even though the number of issued shares had risen by over 730 shares.
In the end, the January 29th, 2021 market statistics -- showing a Valuation of KES 2,116.70 per share -- persuaded us that these upward trends were more or less durable, and that they should trigger and anchor a move away from a fixation on the "fixed nominal price" as the acceptable measure of Unashig's marketable/tradeable value. The Board agreed to use the Valuation as the starting point for Unashig's foray into an obviously more realistic -- though more volatile and more complicated -- way of tracking value.
And it is not just the ebb and flow of the share price that was now going to demand constant attention. We could no longer ignore the impact that our inattention, hitherto, to the effects that transactional levies and bank-to-bank remittance charges were having on Unashig's bottom line. We are making changes, but we haven't closed all the loopholes yet.
Round Three of our Fund Raising will now run from Monday, February 8th, 2021 and end at midnight on Friday, April 30, 2021. The purchase -- and even the sale by those who may wish to -- of CA and CB shares will be guided by the Pricing Formula elaborated at the link given below. Please look at it carefully. Those who wish to sell their shares should use Unashig's WhatsApp walls to make their intentions known.
READ; The Unashig Share Pricing Formula
