Kenya’s first initial public offering (IPO) in 11 years, for the state-run Kenya Pipeline Company, closed slightly above target, selling 12.5 billion shares against an 11.8 billion-share offer. The 65% stake sale values the company at $1.3 billion, with proceeds earmarked for the National Infrastructure Fund, part of William Ruto’s $31 billion ten-year development plan. The IPO received a significant boost when Uganda National Oil Co. purchased a 20.15% share for $255.4 million, helping drive investor interest. Local institutions hold the largest stake, while retail investors and employees collectively hold a minor portion. Analysts had warned that the offer price was steep, with some arguing the share price was more than double the company’s intrinsic value. Trading will begin on March 9, giving East Africans their first chance in eleven years to own a piece of state-run fuel distribution.
Bloomberg
