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Kenya Airways earns Sh14b in Rights Issue

The national carrier said in a statement that “listing and commencement of trading of the new shares on the Nairobi Securities Exchange will be on Thursday, 21 June 2012/FILE

NAIROBI, Kenya, Jun 8 – Kenya Airways (KQ) has announced that it raised Sh14.48 billion in April’s Rights Issue out of the expected Sh20.7 billion.

This represents a 70.06 percent subscription rate, marginally above its minimum target of 70 percent. The airline sold 1.03 million of the 1.4 million new shares that were on offer at Sh14 each.

The national carrier said in a statement that “listing and commencement of trading of the new shares on the Nairobi Securities Exchange will be on Thursday, 21 June 2012.”

The existing shareholders applied for 42.02 million additional shares, valued at Sh588.3 million, while new investors raised Sh1.98 billion after applying for 141.9 million shares.

The Government of Kenya, one of the main shareholders, raised its stake in KQ from 23 percent to 29 percent, while Royal Dutch Air France KLM has raised its shareholding from 26 percent to 26.73 percent.

”Whereas KLM subscribed for its full entitlement of new shares, its application was scaled back such that it will be allotted 280 million new shares, which will take its shareholding in KQ from 26.00 percent to 26.73 percent, after the Rights Issue,” read a section of the statement.

Shares certificates will be dispatched to the authorized agents for collection by the investors from June 21 2012.

The Rights Issue kicked of on April 2 and ended on April 27. The national carrier said it wanted to raise funds to finance an expansion programme that entails acquisition of new fleet of aircrafts from the current 34 to 68 by 2016, and to 119 by 2022.

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