NAIROBI, Kenya, Jan 20 – The Kenya Pipeline Company (KPC) has reserved 590.6 million shares for its workforce and 1.8 billion shares for Oil Marketing Companies (OMCs) in its Initial Public Offering (IPO), establishing a combined 20 percent allocation for internal stakeholders and key industry partners.
The company’s prospectus confirms that the total public offer comprises 11.8 billion shares, with the employee and OMC tranches representing 5 percent and 15 percent of the aggregate volume, respectively.
The allocation policy, structured in compliance with the Capital Markets (Securities) Regulations, 2023, distributes the remaining 80 percent of shares equally across four categories.
Kenyan retail investors, Kenyan institutional investors, East African Community (EAC) investors, and foreign investors have each been assigned a 20 per cent weighting, equating to 2.4 billion shares per category. The offer documents stipulate that if the number of shares applied for in any category matches or falls below the reserved amount, all valid applications will be allocated in full.
In addition to the direct IPO allocation, KPC has constituted an Employee Share Option Plan (ESOP) Trust to hold up to 1.5 per cent of the company’s authorized share capital post-listing. This secondary scheme operates on a hybrid model whereby eligible employees acquire units either at nominal value or through no-cost grants.
To govern the release of these equities, the framework mandates a minimum lock-in period of two years. During this period, employees retain beneficial interests in the underlying shares held by the professional trustee, rather than direct legal title.
The prospectus outlines specific liquidity mechanisms for the ESOP, stating that upon vesting or exit, the Trustee shall sell the corresponding shares on the Nairobi Securities Exchange (NSE) at prevailing market prices. Employees will receive cash proceeds net of costs and taxes, with the company explicitly excluding itself from funding or guaranteeing any redemption or settlement payments.
Regarding the IPO application process, the rejection policy requires all applicants to hold a valid Central Depository System (CDS) account and provide complete banking details, noting that failure to adhere to these documentation standards will result in immediate disqualification.
