The Lower Eastern Times Opening The Third Eye
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Some energy-sector investors received far smaller share allocations than anticipated in the Kenya Pipeline Company (KPC) Initial Public Offering (IPO), despite initially being offered sizable portions of the state-owned firm.
Analysts indicate that foreign investors, who were allocated 20 percent of the shares, ultimately acquired only 0.02 percent. Similarly, market investors took up just 0.0141 percent of their 15 percent allocation.
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The low uptake by foreign and market participants meant that local institutional investors ended up receiving a larger portion of the company.
The National Social Security Fund (NSSF) emerged as the biggest winner, securing 41 percent of KPC, more than double the 20 percent initially offered to the fund.
The Government of Kenya retained 35 percent of the company, matching its originally planned stake.
Investors from the East African Community, including participants from Rwanda and Uganda, acquired 21.2 percent of the shares, slightly above the 20 percent initially allocated to the regional bloc.
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Meanwhile, local retail investors subscribed to only 2.56 percent of the company, far below the 20 percent set aside for them, while KPC employees took up just 0.06 percent compared to the 5 percent reserved for staff.
