Kenya Electricity Generating Company is offering a total of 4, 396, 722, 912 new ordinary shares at a discounted price of Sh6.55 per share to raise Sh29 billion for business expansion in a Rights Issue that closes on Friday June 10, 2016.
Speaking during the launch of the fundraising via rights issue in Nairobi, KenGen Managing Director and CEO Eng. Albert Mugo said the offer would give shareholders an opportunity to reap more from the company. “By participating in the offer, shareholders will contribute to the growth of the company and reap more from our dividend scheme,” said Eng. Mugo.
The Rights Issue comes 10 years after the company’s Initial Public Offering (IPO) in 2006, which at the time was the largest on the Nairobi Securities Exchange. The Government, which is the principal shareholder, has taken up its full entitlement of rights, representing 70% of the transaction, through the conversion of some of the loans on-lent to KenGen into equity (shares).
Eng. Mugo termed the move by the Government a vote of confidence in the company’s future and urged other shareholders to take full advantage of the offer and increase their investment in the company.
KenGen, which is the leading energy generator with more than 70% market share, has lined up a number of energy generating projects for development. “With the country’s power demand expected to cross the 4,000MW mark by 2020. Success in the future is dependent on early planning and that is why we are asking shareholders to take up their rights at this time so that we can have enough capital for expansion,” said Eng. Mugo.
