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KPLC Rights Issue clocks Sh9.5b

NAIROBI, Kenya, Jan 12- The Kenya Power and Lighting Company (KPLC) has recorded a 3.17 oversubscription percent of its rights issue of 488.6 million new shares.

During the offer, KPLC raised Sh9.528 billion meeting its initial target set for the offer marking 100 percent subscription.

Announcing the results, KPLC Managing Director Eng Joseph Njoroge said he was pleased with the success of the rights issue given the timing and complex process that formed part of the company\’s capital base restructuring exercise.

The restructuring exercise entailed the conversion of the government\’s preference shares into ordinary stock, a share split culminating in the rights issue.

"We are proud of the success of the entire process and it\’s a lesson to other firms that with commitment and focus that a seemingly difficult process can succeed," Eng Njoroge said.

Shareholders will now receive 20 new shares for every 51 shares held, with the new shares expected to start trading on January 24.

The total number of shares under entitlement stood at 284,894,529 shares, which yielded Sh5.5 billion. Some 4,619 shareholders applied for additional new shares amounting Sh4.2 billion. Out of this, 4,572 applicants received full allotment of the new shares.

Eng Njoroge said all shareholders who applied for a maximum of 500,000 new shares would receive full allocation while those in excess of 500,000 would receive an 89.4 allotment rate, rounded down to one share.

"The process has so far run smoothly and we will only have 47 refunds, mostly corporate and institutional investors, to make from the transaction," Dyer and Blair Chairman Jimmnah Mbaru said.

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Given the timing of the rights issue, Equity Bank and Centum Investment had underwritten 50 percent of the offer.

However, the transaction advisor said that both companies did not take up any new shares.

"The 103 percent subscription was before the underwriting, therefore nothing was left on the table for them to take," Mr Mbaru said.

Eng Njoroge said KPLC would soon be rolling out its refurbishment of its power transmission system, ensuring consumers have steady and consistent supply of power.

"This exercise was a planned program and the implementation of the projects will be rolled out soon. Most of the design work is complete and you will begin to see work on the ground shortly," he said.

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