Govt Raises Ksh 106.7 Billion From Kenya Pipeline Company IPO

Treasury Cabinet Secretary (CS) John Mbadi has announced that the government obtained a total of Ksh106.7 billion from the just concluded Kenya Pipeline Company Initial Public Offer (IPO).

Speaking on March 4, Mbadi said the government offered 11,812,644,350 shares at KSh 9 each.

He added that investors applied for 12,486,078,724 shares, translating to an overall subscription rate of 105.7 percent, which signals strong confidence in the government’s privatization agenda.

“We did offer 11,812,644,350 shares at a price of Kshs. 9 each. The total number of shares applied for stood at 12,486,078,724, translating to an overall subscription rate of 105.7%. Having received full subscription of the offer shares signals a resounding vote of confidence in the government’s privatization agenda,” Mbadi said.

Kenyan Individual & Institutional Investors

Mbadi said the government has allocated 7,951,752,222 shares to Kenyan individual and institutional investors, representing 67.32% of the offer shares.

He added that EAC individual and institutional investors received 3,857,024,178 shares, representing 32.65% of the offer shares.

“We have allocated 7,951,752,222 shares to the Kenyan individual and institutional investors representing 67.32% of the offer shares, while the EAC individual and Institutional investors have been allocated 3,857,024,178 representing 32.65% of the offer shares,” Mbadi said.

Also Read: Ruto Reveals How Proceeds from Safaricom and Kenya Pipeline Company Sales Will Be Utilized

Kenya Pipeline Company Transition

Mbadi said that following the IPO performance, Kenya Pipeline Company (KPC) will transition into a listed corporate entity.

He added that the listing positions KPC as a regional company capable of playing a significant geopolitical role in East Africa’s petroleum sector through its pipeline infrastructure and strategic location.

Also Read: Govt Gives Way Forward on Privatization of Kenya Pipeline Company

He further stated that the divestiture will give KPC the flexibility to access capital to expand pipeline capacity, improve storage facilities, and develop its oil refinery to meet growing demand and regional needs.

“From the IPO performance outcome, KPC transitions not just that of being a listed Corporate but will now be properly positioned as a regional Company allowing it to play a significant geopolitical role in East Africa’s petroleum sector, primarily through its pipeline infrastructure and strategic location. KPC from this divestiture shall acquire the much-needed flexibility to access capital for expanding its pipeline capacity, improving storage facilities, and developing its oil refinery to cater to increased demand and regional needs,” he added.

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