CMA extends Kenya Pipeline Company IPO deadline to February 24

Kenya Pipeline Company (KPC) petroleum storage facilities in Nairobi on August 21, 2024. [Kanyiri Wahito Standard]

The Capital Markets Authority (CMA) has extended the Kenya Pipeline Company (KPC) Initial Public Offering (IPO) closing date by three working days to Tuesday, February 24, at 5 p.m.

The offer, Kenya's first large-scale Electronic IPO, had been set to close Thursday, February 19, at 5 p.m.

It involves the sale of 11.81 billion ordinary shares, representing a 65 per cent stake in the state-owned fuel transporter, at Sh 9.00 per share, with the government retaining a 35 per cent stake.

The extension follows public participation forums tied to the government's privatisation programme, where retail investors said they needed more time to finalise their investment decisions.

Acting Privatisation Authority Managing Director Dr Janerose Omondi said the move was rooted in inclusion.

"The extension is aimed at ensuring broader participation and will provide investors adequate time to finalise their investment decisions in line with our commitment to inclusivity and transparency," said Omondi.

Investors who have already submitted valid applications are not required to take further action.

New applications can be submitted through stockbrokers, investment banks and authorised selling agents, the KPC IPO portal or by dialling 483816#.

Applicants without a Central Depository and Settlement (CDS) account can open one directly through the IPO platform.

Allocation results will be announced on March 4, followed by electronic crediting of shares to CDS accounts and processing of refunds by March 6.

Trading at the Nairobi Securities Exchange (NSE) under the ticker KPC.0000 on the Main Investment Market Segment begins on March 9.

The extension comes a week after CMA authorised the integration of electronic CDS account opening into the KPC IPO platform to ease participation.

"The KPC IPO is about democratising ownership of one of Kenya's strategic national assets. By leveraging digital platforms, we are making participation in capital markets simpler and more equitable," said Omondi.

The offer is open to retail investors, institutional investors, KPC employees, oil marketing companies, East African Community (EAC) citizens and international investors.

Following the IPO, KPC will transition from a state corporation to a Public Liability Company (PLC), adopting governance standards in line with CMA regulations, including shareholder-led appointment of directors and minority shareholder protections.

The company has committed to distributing 50 per cent of net earnings as dividends post-listing.