Kenya has launched the initial public offering of its state-owned Kenya Pipeline Company, seeking to raise about 106.3 billion shillings, or roughly $825 million, in one of the country’s most ambitious capital market transactions to date. The government is offering 65 percent of the company to investors, with the sale running from January 19 to February 19 and shares expected to list on the Nairobi Securities Exchange in March, according to details reported by Reuters.
The IPO forms part of President William Ruto’s wider economic reform agenda aimed at mobilising private capital, reducing pressure on public finances and deepening Kenya’s capital markets. Finance ministry officials said the government is increasingly turning to asset sales and market-based funding as space for higher taxation and borrowing narrows, a position echoed by the Treasury in recent budget statements.
The offer has been priced at nine shillings per share and is structured to attract a broad mix of investors, including retail investors, institutional funds, oil marketing companies and company employees. Under the transaction, the government will retain a 35 percent stake in Kenya Pipeline Company, maintaining strategic oversight of a critical energy asset while opening ownership to the public.
TimesLive says the deal could rank among the largest IPOs in East Africa by value and may help revive activity on the Nairobi Securities Exchange, which has seen subdued listings in recent years. Market watchers noted that a successful offering could boost investor confidence and set the stage for further privatization and listings by the Kenyan government.
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