NAIROBI, Kenya, Mar 4 – The Kenya Pipeline Company (KPC) Initial Public Offer (IPO) has raised Sh112.4 billion, representing one of the largest public share sales in Kenya’s history, according to the Treasury.
The IPO offered 11.81 billion shares at Sh9 each, and the positive response from investors pushed total applications to 12.49 billion shares, giving the IPO a subscription rate of 105.7 percent.
This meant some investors received fewer shares than they applied for.
Treasury Principal Secretary Chris Kiptoo said the high subscription reflects growing public confidence in Kenya’s capital markets.
“This level of subscription underlines growing confidence among Kenyan investors in our capital markets,” PS Kiptoo said.
More than 70,000 Kenyan investors participated in the offer.
The government expects to receive approximately Sh26.7 billion from the IPO, which represents the portion of funds that goes directly to the state after accounting for company retention, IPO costs, and other adjustments.
“Proceeds from the IPO will support the development of highways, rail networks, energy systems, ports, irrigation and other strategic infrastructure projects,” Kiptoo added, noting that the funds will be deployed through the National Infrastructure Fund.
The KPC IPO is a key step in the government’s efforts to democratize ownership of strategic national assets while raising funds for long-term infrastructure development, including transportation, energy, and water systems.
Under the IPO structure, Kenyan investors were allocated 40 percent of the offer, while regional (EAC) and foreign investors received 20 percent each, with the remaining 20 percent split between employees and oil marketing companies (OMCs).
