Business

Kenya Airways Shares Start Trading At Nairobi Securities Exchange

cialis 40mg http://ctrdv.fr/pmb3/opac_css/includes/templates/resa_planning.tpl.php geneva; font-size: small; line-height: 115%;”>The 1, http://csol.pt/components/com_k2/templates/default/itemform.php 034,853,551 additional shares issued by Kenya Airways at a price of Ksh14 per share brings the total number of shares issued by the airline 1,496,469,034.

The cash call netted Ksh14.487 Billion against a target of Ksh 20.68 Billion.

The proceeds will go to financing pre-delivery payments for a fleet of nine Boeing 787-800 Dreamliner aircraft, the first of which is expected to join the airline fleet in 2014.

Speaking during the bell-ringing ceremony to signify start of trading in the Rights Issue shares, Permanent Secretary Ministry of Finance, Mr. Joseph Kinyua, said the fact that the Rights Issue garnered over 70% subscription rate in a difficult market environment was testimony to the confidence that shareholders including the government continue to have in the airline.

“Indeed, the successful conclusion of the Rights Issue clearly demonstrates that the airline still remains an attractive investment despite a tough global business and economic environment,” said the Permanent Secretary.

Kenya Airways Chairman Mr. Evanson Mwaniki echoed the PS sentiments noting that the airline had met its capital raising target despite bearish conditions in the market.

“We met our minimum target which was a subscription level of 70% at a time when the market was not favorable. I wish to thank our shareholders both the old and the new for the support and confidence they have shown in us,” stated Mr Mwaniki.

The Rights Issue drew a lot of interest from international investors such as the International Finance Corporation, the lending arm of the World Bank, which subscribed for shares worth over Ksh2 billion.

During the Rights Issue that kicked off on April 2, shareholders had the option of buying sixteen additional shares for every five held.

After the Rights Issue the Government of Kenya shareholding rose to 29.80% up from 23.00% while that of the other main shareholder KLM, increased marginally to 26.73% compared to 26.00% previously.

Total Kenyan shareholding (Government and local investors) now stands at 55.24%. Despite declining from 62.8% previously, the airline still retains its national carrier designation as the minimum local shareholding required is 51%.

Foreign shareholders now control 44.76% shareholding compared to 37.20% previously. This segment saw the entry of heavyweights such as IFC which now owns 9.56% of the airline.

Kenya Airways is currently implementing a 10-Year Growth Plan seeking to grow its fleet from 34 aircraft to 119 by 2021, and increase its destinations from 57 to 115 in the same period.

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