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Tycoon opposes broker's bid to suspend Safaricom IPO refund

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At the close of the IPO, Dilesh Somchand Bid was allotted 6,906,300 shares while his un-used balance of Sh127.9 million was to be refunded by June 9, 2008. FILE PHOTO | NMG

Afrika Investment Bank Limited (AIB) is back in court seeking to suspend the order directing it to pay Sh27 million to business tycoon Dilesh Somchand Bid pending determination of the appeal.

The stockbroker was in January ordered by Olga Sewe to pay Mr Bid Sh8.9 million in compensation, plus an annual interest of 14 per cent beginning August 1, 2009 for delayed crediting of Safaricom #ticker:SCOM IPO shares into his CDS account.

Mr Bid sued AIB after it rejected his demand for Sh18 million compensation for loss suffered due to the delayed updating of his investment account that rendered him unable to dispose of the shares when the prices were still high.

“The honourable court be pleased to order stay of execution of the judgment delivered on January 24, 2008 and the resultant decree pending the filing, hearing and determination of the applicant’s intended appeal in the court of appeal,” reads one of the order’s sought by AIB.

But Mr Bid has opposed the application, noting that he can refund any amount in the event the court of appeal rules in AIB’s favour. He notes that he has waited for nine years for the refund.

Further, he argues that it is disingenuous for AIB to claim that it would suffer irreparable loss in paying him the award, noting the award is his own dues from the Safaricom IPO refund.

Mr Bid in April 2008 made an application, through AIB, to buy 32.5 million Safaricom initial public offering (IPO) shares at a total cost of Sh162.5 million.

At the close of the IPO he was allotted 6,906,300 shares while his un-used balance of Sh127.9 million was to be refunded by June 9, 2008.