Shareholders make enquiries over the Kenya Electricity Generating Company rights issue during a sensitization forum in Nakuru on May 24, 2016. PHOTO | SULEIMAN MBATIAH
What you need to know:
“All applicants will receive 100 per cent of the new shares applied for,” said Kengen’s company secretary Rebecca Miano.
Listed power generating company, KenGen, has raised Sh26.4 billion from the sale of new shares at a discounted price of Sh6.55 each.
The firm fell short of the targeted Sh28.7 billion following a 92 per cent subscription in the rights issue.
The short fall will affect KenGen’s plans to finance capital expenditures in geothermal and wind power generation. KenGen had planned to spend Sh20.1 billion to settle expensive debt and the remaining Sh8.6 billion in capital expenditure.
“All applicants will receive 100 per cent of the new shares applied for,” said KenGen’s company secretary Rebecca Miano.
KenGen was selling 4.4 billion new shares to its existing shareholders at the ratio of two for each share owned to raise the targeted Sh28.8 billion.
There were 351,210,589 untaken rights resulting in the shortfall.
The new shares will start trading at the Nairobi Securities Exchange on Wednesday.
