KenGen Gets Approval to Raise Ksh 28.8 Billion via Rights Issue

KenGen has said that it has been given the green light by Capital Markets Authority (CMA) and Nairobi Securities Exchange (NSE)  to raise Ksh 28.8 Billion through rights issue to the existing shareholders.

The NSE listed company will be offering a total of 4, 396, 722912 new shares at a price of Ksh 6.55 per share in the ratio of two for one. Register closes on Monday 16th May 2016.

KenGen says the offer price of Ksh 6.55 represents a discount of 18.33% to the weighted average of its share price on the NSE for the past 30 Days upto and including 4th May 2016, and 22.94% on the last trade price.

The Kenyan Government, which is a majority shareholder heard earlier on indicated that it was willing to take up its rights issue which equals about 70% of the total transaction through conversion of some of its debt into equity.

Related; KenGen Profit before Tax rises by 121% to Ksh 8.38 Billion

Standard Investment Bank, Renaissance Capital have been appointed as Transaction advisors while while Dyer & Blair and Faida Investment Bank are the lead sponsoring brokers. Image Registrars will be the receiving agents and data processor while Cooperative Bank will be the receiving Bank for the rights issue.

Time Table For The Rights Issue 

KenGen Kenya Rights Issue Time Table
KenGen Kenya Rights Issue Time Table

Share Price Performance

On Monday 9th May, KenGen’s share Price closed at Ksh 8.00, 48.1% above the 1 year low of 5.40 set on Jan 27, 2016. See share Price trend for the last one year;

KenGen Share Pice for the last one year
KenGen Share Pice for the last one year

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