The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced that it has entered into an agreement to allot approximately 351.2 Million shares (equivalent to 5.33% stake) to South Africa’s Public Investment vehicle, PIC SOC Limited.
“KenGen wishes to advise its shareholders and the public that it has, on February 22, 2017 entered into an agreement with the Public Investment Corporation SOC Limited, acting in its capacity as the authorised representative of the Government Employees Pension Fund, a South African based institutional investor to allot 351,210,589 ordinary shares in KenGen at a price of KES 6.55 per share.” The Nairobi Securities Exchange listed firm said in a statement.
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The completion of the proposed allotment is however subject to various conditions contained in an agreement, including receipt of all necessary approvals.
“The proposed allotment may have an effect on the trading of the shares of KenGen. Accordingly, shareholders and the public in general are advised to exercise caution when dealing in the shares of KenGen.” the company noted.
KenGen currently has 2.2 Billion shares with the Government controlling a majority 70% but 614 million shares are available to the public (free float). The company relies mostly on debt to fund its ambitious projects. It owns 32 power generating plants with a combined installed capacity of 1,617 megawatts from generation modes, consisting hydro, thermal, geothermal, and wind technologies.
Share Price Movement & then the possibility of Insider Trading
Since the 26th of January when the company’s share price was trading at Sh 4.95 per share, it has rallied by more than 32% to Sh 6.55, the entry price of PIC SOC South Africa as shown in the chart below. Over 30 Million shares have exchanged hands since then with a bigger chunk of 10.16 million shares traded on Monday 20th..
