Kenya Pipeline Company (KPC) PLC on 10th March marked its official listing on the Nairobi Securities Exchange (NSE), entering the market as one of the exchange’s top 10 largest companies by market capitalisation. KPC commenced trading on the Nairobi Securities Exchange (NSE) at an opening price of Ksh 9.30 per share.
The listing, which is the first privatisation listing since 2008, was commemorated through a ceremonial bell ringing officiated by Kenya’s President, Dr William Samoei Ruto, at the NSE Trading Floor in Nairobi. The ceremony followed the successful completion of the Kenya Pipeline Company Initial Public Offering (IPO) that recorded a 105.7% oversubscription to raise KSh 112.374 billion.
Speaking during the ceremony, President Ruto said the Kenya Pipeline listing is a signal of strength, confidence, and maturity of Kenya’s economy and represents a major step in broadening citizen participation, democratizing the ownership of strategic national assets and strengthening Kenya’s capital markets.
“This has been Kenya’s first fully electronic Public Offer with all applications submitted digitally, making it a truly paperless and modern IPO,” he said. “It attracted more than 70,000 ordinary Kenyan investors, achieving one of its most important objectives; broadening ownership and giving more citizens the opportunity to participate directly in the growth of our national enterprises.”
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“Equally significant, Dr Ruto said, is the participation of the Government of Uganda and the Government of Rwanda. “This now makes Kenya Pipeline Company a strategic national and regional enterprise and reflects the deepening economic integration within the East African Community,” he added.
President Ruto underscored that the proceeds of the KPC IPO have opened an opportunity for the country to shift towards a more sustainable model of financing infrastructural development and access to Ksh1.2 trillion in long-term resources for financing of various infrastructure programmes. “Unlike previous privatisation proceeds that were absorbed into the government’s general budget, the proceeds of this IPO as well as future privatisation transactions will provide capital to the National Infrastructure Fund,” he said.
Kenya Pipeline Company PLC Board Chair, Mrs Faith Bett-Boinett, pledged the Board’s commitment to steer the company to greater heights as it transitions into a publicly traded regional energy infrastructure company. “To our new shareholders: This is your company. We pledge to steer it with integrity, with transparency, and with an unwavering focus on delivering value.”
Kenya Pipeline Company PLC Managing Director, Mr. Joe Sang said, the company’s listing cements a legacy built over 53 years of operational excellence. “This listing is not driven by sentiment. It is anchored in strong leadership, robust cash flows (Kshs. 18 billion), disciplined cost management, operational resilience, zero debt ($350 billion syndicated loan was paid ahead of time), unqualified audit opinion (3 years in a row) and a solid track record of paying dividends.”
As one of the region’s most strategic energy infrastructure companies, Kenya Pipeline Company plays a vital role in the safe, reliable, and efficient transportation and storage of petroleum products across Kenya and the wider East African region.
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