“The share price is a reflection of the underlying performance of a particular company. From an issue price of Sh9.50, the share is now averaging Sh2.35 being more than four times lower than its IPO price. According to Mr Kihanda, a company‘s share price going below IPO price can be a source of concern since it negatively affects the perception of investors. Despite this stormy performance on the bourse, a few stocks such as Safaricom, Kenya Re, Cooperative Bank and NSE Limited are trading above IPO price. While Safaricom‘s share price is now more than three times the IPO price, that of Kenya-Re has slightly more than doubled the IPO issue price.

Source: Standard Digital February 14, 2017 06:42 UTC