NAIROBI, Feb 20 – Kenya’s Capital Markets Authority (CMA) approved a three day extension of the Kenya Pipeline Company initial public offering, pushing the closing date to February 24, the privatization authority said.
The offer was due to close on Thursday. However, it will now remain open until Tuesday at the same time, while all other terms remain unchanged.
The extension comes as investor participation has fallen short of expectations. So far, subscriptions have reached about 20% of the offer, according to feedback from brokers involved in the sale.
The government aims to raise Sh106.3 billion from the IPO. For the offer to proceed, it must secure at least Sh53.1 billion, which represents 50% of the shares on offer.
As a result, officials said the additional time will allow investors to complete pending applications and support wider participation. Managing Director Janerose Omondi said the move gives investors more room to finalise their decisions.
The IPO opened on January 19 at a price of Sh9 per share with shares scheduled to begin trading on the Nairobi Securities Exchange on March 9.
In terms of allocation, retail investors have been assigned 20% of the offer. Oil marketing companies will take 15%, while employees will receive 5%. Meanwhile, the remaining shares will be distributed among local institutional, East African and foreign investors, each with a 20% allocation. The government will retain a 35% stake after the sale.
The offering is set to become the region’s largest, surpassing the 2008 IPO of Safaricom, which raised just over Sh50 billion.
At the same time, the sale reflects Kenya’s push to raise funds as debt pressures increase and fiscal space remains tight.
