Kenya Pipeline Company shares experience a slight increase in early trading following the IPO
Shares of Kenya Pipeline Company experienced a slight increase in early trading on Tuesday following their listing on the Nairobi Stock Exchange, according to LSEG data.
At 0715 GMT, the shares were trading at 9.4 shillings, in comparison to the Initial Public Offering (IPO) price of 9 shillings per share.
The Kenyan government divested a 65% stake in the pipeline company, generating 106.3 billion shillings ($823.07 million), marking the East African nation’s first significant IPO in almost two decades.
The IPO experienced significant oversubscription, even in light of prior worries regarding diminished valuations from certain banks, a prolonged offer period, and local media coverage suggesting a lack of investor enthusiasm.
The government has announced plans to allocate 15 to 20 billion shillings from the IPO proceeds for the expansion of the main airport in the capital, Nairobi.
Due to constrained fiscal capacity for tax- or debt-driven development, President Ruto’s government has opted to securitize revenue streams and divest state assets.
