Kenya Airways PLC resumed trading on Thursday after a two-week suspension to facilitate the share split and simultaneous consolidation of the company’s shares which forms part of the Kenya Airways PLC capital transaction.
As a result, existing ordinary shareholders have seen their shareholding reduced through a reverse 1:4 (one share for every four held) share split.
During the Thursday’s session, Kenya Airways share price shot up by more than 130% to close at Sh 12.50, from its last closing price of KES 5.30 before the suspension.
“For illustration purposes, an investor holding 4,000 ordinary shares prior to the restructuring, will see their shareholding reduced to 1,000 ordinary shares.
Going forward, we expect significant volatility in share price as the market reprices and recommend that investors exercise caution when dealing in the group’s shares.” Stock broker Apex Africa Capital noted in its daily note to investors.
Fred Mutisya, an avid investor at the Nairobi Securities Exchange has explained the effect of the debt restructuring exercise in a short video below.
Disclaimer: The opinions expressed are the author’s own and do not constitute financial advice of any kind. For more information consult your financial advisor and the source document, ‘Project Safari from KQ”
