KenGen shares trade below rights issue price for second day
What you need to know:
At the closing of the market, the listed shares were selling at an average price of Sh6.50, lower than the Sh6.55 at which the rights issue has been set.
Shares of the Kenya Electricity Generation Company (KenGen) at the Nairobi Securities Exchange traded at a lower price than that of the rights issue for the second day Tuesday.
At the closing of the market, the listed shares were selling at an average price of Sh6.50, lower than the Sh6.55 at which the rights issue has been set.
KenGen investors are getting two shares for every one held in what is expected to raise Sh28.8 billion with about Sh21 billion coming from the government, the company’s majority shareholder.
There was however brisk trading of the rights as nearly 2.6 million shares moved at a price of five cents. This means that the investor buying the rights yesterday will effectively be buying them at Sh6.60, five cents above the set price.
On Monday, there was no trading in the rights, but the listed shares were trading at an average of Sh6.35 each, 20 cents below rights issue price per share with some 6.4 million shares moving. Foreign investors accounted for most of the demand.
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