ICDC Investment is the largest quoted investment company in Kenya with a Sh10 billion portfolio. It has invested in both quoted and unquoted firms in several sectors - mainly beverages (over 40 per cent of the portfolio).
In October, the company reported an 86 per cent increase in pre-tax profits, with gross earnings for the year ended June hitting Sh696 million. Profit after tax went up 105 per cent.
"Our strategy was to invest firms with a strong competitive advantage in their markets," ICDCI chief executive, Mr Peter Mwangi, said when announcing the latest results. The directors recommended a dividend payout of Sh4, only a third up from Sh3 the previous year.
The share split proposal will be presented to an annual general meeting of shareholders on Friday next week. The register of shareholders remained closed to determine who was entitled to the split and a proposed dividend.
Should all go as expected, the dividends will be paid on January 22, the same day post-split trading in the increased shares begins.
ICDC Investments has invested in such listed firms as East African Breweries, Kenya Commercial Bank, East African Cables, Nation Media Group, Mumias Sugar and Carbacid Investments.
Its unquoted holdings include - or have included - General Motors (EA), Kenya National Properties, Eveready Batteries, NAS Airport Services, UAP Provincial Insurance, Aon Minet Insurance Brokers, Kenya Wines Holdings and Kisii, Rift Valley and Mount Kenya Bottlers, among others.
The company's major investment decisions of 2006 included getting out of Uchumi Supermarkets and investing in Rift Valley Railways.
The announcement of increased profits and the share split plan pushed ICDCI's share price from Sh391 to Sh553 in two days. It later went on to hit a high of Sh800. The stock closed at a post-split price of Sh36on Friday.
The firm joins the ranks of East African Breweries, Kenya Oil Company (Kenol/Kobil) and East African Cable Company, which have all split their shares.
"The decision to split the shares shows that the management is optimistic about the future earnings in the company," Ms Caroline Wanjihia, a dealer at the Old Mutual Asset Managers, said.
Source: The East African Standard
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