NAIROBI, Kenya, Jul 6 – The Kenya Electricity Generating Company (KenGen) new shares have began trading on the Nairobi Securities Exchange (NSE) following a successful Rights Issue, which posted a 92 percent subscription.
The listed power generator raised Sh26.4 billion from a target of Sh28.8 billion that will be used to implement the 700 Megawatts (MW) target by 2018.
The firm’s projects include the 140MW Olkaria V, 70MW Olkaria I unit 6 and Meru Wind phase 1 (80MW) and have already attracted funding from development partners.
The company offered 4.4 billion new shares at Sh6.55 each to existing shareholders at a ratio of two for each share held to raise the targeted amount.
About 58.2 percent of the offer was taken up under additional shares and rump. All applicants have received 100 percent of the new shares applied for.
KenGen Managing Director Albert Mugo attributed the success of the offer to the high level of confidence investors have in the company.
“Investors bought the new shares based on the confidence they have in KenGen to successfully deliver on planned projects and spur the company to profitability. The prospects are brighter especially with increased investment in geothermal and other green energy sources, which is the core of our strategy,” he said.
Earlier the firm had stated that it requires Sh1 trillion to add some 2.5GW to the national grid in the next 10 years.
This comes as Kenya is gearing towards a forecast of over 5GW by 2030.
KenGen is the leading electric power generation company in Kenya, producing about 80 percent of electricity consumed in the country.
The company utilises various sources to generate electricity ranging from hydro, geothermal, thermal and wind.