Kenya Pipeline Company’s initial public offering has drawn strong demand from institutional investors, according to Faida Investment Bank, the lead transaction adviser. The IPO, one of the largest in East Africa in local currency terms, ran from January 19 to February 24 and was priced at 9.00 Kenyan shillings per share, with the government selling a 65 percent stake to raise roughly 106.3 billion shillings ($825 million), according to Marketscreener.
Belgrad Kenne of Faida Investment Bank said participation from pension funds, banks, and other large institutional investors was a key driver of the oversubscription, countering earlier concerns over investor appetite. Retail investors also contributed significantly, though allocation details and individual institutional participants were not disclosed.
The IPO allocated 15 percent of shares to oil marketing companies, 5 percent to employees, and the remainder to local retail, institutional, East African, and foreign investors. The government retains a 35 percent stake and receives all proceeds from the sale, The Star reported.
Allocation results are being finalised, with announcements expected on March 4, ahead of the planned listing on the Nairobi Securities Exchange on March 9. The successful subscription underscores robust investor confidence in Kenya’s strategic energy infrastructure.
