Companies

Kiuna rises to third-largest BOC owner with 5pc stake

ngugi

Former Boc Kenya chairman Ngugi Kiuna. FILE PHOTO | NMG

Ngugi Kiuna, chairman of industrial gas manufacturer BOC Kenya #ticker:BOC , has acquired an extra 723,000 shares worth Sh65 million in the company in what has seen him rise to rank as the third-largest shareholder.

His stake rose from 1.3 per cent in April last year to 5.1 per cent this March, according to regulatory filings.

Mr Ngugi first appeared in BOC’s list of top shareholders in 2014 when he bought 74,300 shares, with his increased purchases seen as a projection of confidence in the firm’s future prospects.

The 5.1 per cent stake is currently worth Sh89.1 million based on the Nairobi Securities Exchange-listed #ticker:NSE company’s prevailing share price of Sh90 a piece. Stock purchases by directors and senior executives of listed firms are ordinarily seen as a vote of confidence in the companies’ future prospects given that they have deep insights into the financial position of the organisations they lead.

Such purchases, when done in the open market, could also be an indication of senior executives’ belief that their stocks are under-valued.

BOC supplies industrial, medical and specials gases in Kenya, Uganda and Tanzania.

Its revenues and earnings have dropped significantly over the years. The company is yet to enter the Carbon dioxide market after it failed to acquire Carbacid, which is the main manufacturer of the gas in the country.

Mr Ngugi is a long-time director of BOC whose board he joined in 1993 as a non-executive director. He was appointed chairman of the firm in 2012.