Safaricom IPO: How naive punters burnt their fingers
Retail investors queue for their refunds after missing to be allotted the full number of shares applied for. Photo/ANTHONY KAMAU
A slow crisis is brewing in the financial sector as it emerges that far too many investors borrowed most or all of the money they used to buy Safaricom IPO shares from commercial banks, a phenomenon referred to in the jargon as leveraging.
A government investigation now says that the high leveraging on the purchase of the shares has caused many investors to burn their fingers.
