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FEP Kshs 675,000 Share/Premium for VISION 2015 Biggest Bank

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FEP CEO sells shares in Boston.  FEP CEO sells shares in Boston.

“The Founder share invitation closes at midnight SEPTEMBER 15 2012. As of Today (Feb 15th – March 15th 2012) the same share Unit has an estimated value of Kshs. 675,000.00. (200,000 Par and 465,000 premiums),” an Email circulated states. The last time FEP was around they were selling shares in Boston and stated the number achieved was 1300 shareholder who had paid about Kshs 400,000 (Kshs 200,000 share plus a premium) based on when purchased. Kshs 200,000 is promised to grow 1000 times to Kshs 200 million by 2016.

Based on statement in Email “The volume of applications overwhelmed the personal,” we can assume FEP is getting to 2000 persons. Thus in 4 years FEP would have a bank with a capital value of over Kshs 400 billion if each of the 2,000 shares grows to Kshs 200 million. The World Bank and Central Bank report of 2009 had the value of all 45 Kenya banks Share Capital and Reserves at Kshs 196.25 billion. The FEP CEO asked in Boston how he would pass all 44 banks dodged the question in his answer.

Many Kenyans abroad say growing Kshs 200,000 to Kshs 200 million by 2016 will not occur. The reasonable figure they say an investor should look at is the share of Kshs 200,000 growing to about Kshs 2 million by 2016. Indeed April 2011 when the issue of Kshs 380,000 was done the promise was that in one year or April 2012 this money would have grown to Kshs 1 million value. The Email as sent below has changed the goal post to August 2013 as the date to get to the Kshs 1 million.       

EMAIL SENT & REASONING WHY Kshs 200,000 WILL NOT BE Kshs 200 million 2016

The Email Sent

The CEO ARCHITECT JOHN KITHAKA OF FOUNTAIN HOLDINGS LIMITED WILL UNFOLD THE VISION 2015 OF CREATING THE BIGGEST AND LARGEST BANK IN EAST AND CENTRAL AFRICA AND IN THE PROCESS CREATE 1000 BILLIONAIRES AND COUNTLESS MILLIONAIRES OF ORDINARY KENYANS THROUGH THE CONCEPT TERMED "THE POWER OF MANY" AT JACKSONVILLE FLORIDA ON SUNDAY 29 AT 3PM.

PAYMENTS RECEIPTS UPDATE

The volume of Founder share applications overwhelmed the personnel that was handling the department and therefore created a backlog of issuance of receipts. The creation of a Diaspora desk has streamlined the backlog and the issuance of receipts from FEP HQS will be hitting your inbox towards the end of the week.

FOUNDER SHARE DEADLINE 

The Founder share invitation closes at midnight SEPTEMBER 15 2012.

VISION 2015

It is common knowledge that the real power of any entrepreneur is the ability to access affordable and conveniently tailor-made credit. FEP Group of Companies believes that the only way to be a force in the Kenyan Economy and beyond is to be a major player in the Banking Industry. FGC is therefore working towards having one of the most successful Banks by the year 2015.

TO PROSPECTIVE INVESTORS

The FEP Group of Companies is specifically Investment Companies mandated to identify and initiate innovative and sustainable investments projects that shall ultimately generate wealth for the shareholders.

Through these companies, the shareholders will be helped to attain real financial freedom through joint ventures which guarantee best return on investments (ROI) by embracing economies of scale and the power of pooling people, resources and engaging brains together.

FOUNTAIN ENTERPRISES PROGRAMMES “POWER OF MANY CONCEPTS

Mr. Kithaka who is an architect by profession is the man who believes that the sky is the limit when working as a team. The power of many is their slogan. The FEP Group of Companies focuses in five key areas of investments. 1) Banking 2) Hotels and Tourism 3) Media and Technology 4) Schools 5) Real Estates.. The founder shares to this noble investment opportunity shall close on September 15 2012 (see below). They are already a micro-finance with operations in eight counties. The micro-finance is scheduled to metamorphosis into a deposit taking micro-finance by June 2012 and finally into a fully-fledged bank by latest June 2015.  Currently they are running two successful schools, Fountain School, Tigoni and Fountain School Mwea. They are already at an advance stage of putting up the first state of the art 200-bed capacity hotel in Nanyuki due for completion by June 2013.

FOUNDER SHARE RETURN ON INVESTMENT BREAKDOWN 

As of March 2011 when we officially offered the investment opportunity in the Diaspora, the 200,000/- share Units, had accumulated a premium or value of Kshs. 181,014.24 thus the value of Kshs. 381, 0014.24.

See Chart Below:

 

Share Unit Purchased Between

Price

Kshs

Par Value

Kshs

Premium

Kshs

16-Jan-11 to 15-Feb-11

345,591.15            

200,000         

145,591.15

16-Feb-11 to 15-Mar-11

362,870.70            

200,000         

162,870.70

16-Mar-11 to 15-Apr-11

381,014.24            

200,000         

181,014.24

16-Apr-11 to 15-May-11

400,064.95            

200,000         

200,064.95

16-May-11 to 15-Jun-11

420,068.20            

200,000         

220,068.20

16-Jun-11 to 15-Jul-11

441,071.61            

200,000         

241,071.61

16-Jul-11 to 15-Aug-11

463,125.19            

200,000         

263,125.19

As of Today (Feb 15th – March 15th 2012) the same share Unit has an estimated   value of Kshs. 675,000.00. (200,000 Par and 465,000 premiums)

 

NB: An investor is one who does not work for money but has created a system that makes money for him beyond his generation. Proverbs 13:22.

By August 2013 Kshs 1,000,000 (One Million) SHARE VALUE ONE UNIT

In October 2013, we shall do Private Placement Offer (PPO) with permission of the Capital Markets Authority.

Your worth will be; 1 Share @ Kshs 1,000,000

We shall split shares by 1 million so that your worth shall be mathematically speaking,

1 x 1,000,000 = 1,000,000 x 1 we shall then sell the share privately at Kshs 10.00 hence your worthiness becomes; 1,000,000 @ 10 = 10,000,000 (Ten Million)

Three years down the line 2016 the CAPITAL MARKET AUTHORITY APPROVES AN IPO. The share worth Kshs 10 2013. Assume share worth Kshs 20 - 2016

We shall then have the Initial Public Offer (IPO) by first splitting our shares 20 times so that instead of having;

1,000,000 shares worth Kshs 20. You have 20,000,000 shares worth Kshs 1

Then sell the same share through IPO to the public at Kshs 10, your worthiness effectively translates into; 20,000,000 shares @ Kshs 10 =200M (Two hundred million)

Welcome to this club of the FEP group that introduces you to the world of minimum input maximum output.

REASONING WHY Kshs 200,000 WILL NOT BE Kshs 200 million 2016

Split 1

For any person who does buy shares there is data any investor asks for or even the Capital Markets will require 

For a Private Placement Offer the specific data is the revenue source and profits made.  

If 2,000 initial investor’s shares are valued at Kshs 10 million during split 1 this would mean a total worth of Kshs 20 billion. 

If Kshs 20 billion represents 80% then FEP would have to sell shares of Kshs 5 billion. Based on Email this would be 500 million shares of Kshs 10 for a PPO getting 20% or Kshs 5 billion.  

To the investors of PPO there are two things they could look at. 

  1. The customer growth of the company and profit
  2. The total value of assets    

The power of many is not a new concept; it has been applied in many cases. For example in Kenya many of the 44 banks have shares held by Kenya Public through GOK Treasury. When treasury holds shares it means 41 million Kenyans involvement. GOK has invested in banks like KCB and NBK.     

Split 2

Assume that maybe FEP got through split 1 and the bank recorded a book value of Kshs 25 billion October 2013. 

In next 3 years they would have to build bank for the final sale to public. 

At this stage the bank based on the estimates and email the bank could have 2.5 billion issued shares of Kshs 10.

Based on the projection that the growth of share would go to Kshs 20 and the split by 20. This would lead the bank to have 50 billion shares. 

Again if this will represent 80% then an issued 20% or 12.5 billion shares would be issued at Kshs 10   

New investors would put in Kshs 125 billion 

The bank at this point valued at a book value of Kshs 625 billion   

This would be broken down as follows:

  1. 2000 initial owners……Kshs  400 billion or 67%
  2. Split one investors…….Kshs 100 billion or 13%
  3. Split two investors…….Kshs 125 billion or 20%     

Market Trading Value 

Let’s assume that the Bank gets to this level and the person who bought a Kshs 200,000 can now sell their shares and enjoy the return of Kshs 200 million promised. Is this guaranteed? No! The two best examples are Safaricom  which issued at Kshs 5 to fall by 40% to Kshs 3. Facebook also experienced the same decline of about 30%. Thus the market could value the Kshs 200 million at a much lower selling rate. It could also value at a higher rate.  

 

 

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