The valid applications were for 428,386,000 shares (621% subscrition rate). This even beats KenGen's oversubscription! There was KShs 4.5 Billion chasing a mere KShs 790 in IPO shares!
According to some brokers, there was greater demand but it was dampened by last few days when it seemed that the IPO was going to be oversubscribed. I wonder what the MPs feel about the IPO?
Category A - Employees. They are the luckiest group since they will get all the the largest allocation per applicant. Some employees could even get upto 20,000 shares!
Category B - Corporate. They are guaranteed upto 10,000 shares but some may get additional shares.
Category C - Individuals. They got really screwed! Even at just 500 shares (per the prospectus) there were too many applications! The allocation rules were modified.
The least allocation is 300 shares & the maximum is 6,100 shares.
- Applicants for 500 shares got the sweetest deal i.e. 60% allocation
- Applicants for 5,000 shares got 400 shares i.e. 8% allocation
- Applicants for 1 Million shares got a mere 3,000 i.e. 0.3% allocation!
SG's IPO proves that Kenyans have the cash to invest.
We need to fast-track more IPOs to enable investing the cash in farms, factories, buildings, etc before these funds are used for consumption!
The government needs to issue infrastructure bonds to enable Kenya accelerate economic growth. The time is ripe to divest of all the utilities, including sell more shares in KenGen, KPLC & an IPO for KPA.