KENGEN PROSPECTUS PDF

Jun 4, In the context of the restructuring of the public sector there has often been the dual requirement for a strategic equity partner SEP and capital raising. The SEP would normally be expected to put up a significant portion of the required capital and assume management of the operations. To an extent, that was the scenario in the partial privatisation and listing of Telkom a few years ago.

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Jun 4, In the context of the restructuring of the public sector there has often been the dual requirement for a strategic equity partner SEP and capital raising. The SEP would normally be expected to put up a significant portion of the required capital and assume management of the operations. To an extent, that was the scenario in the partial privatisation and listing of Telkom a few years ago.

The government of Kenya recently conducted an initial public offering IPO with a difference. This was the public sale of a portion of its shareholding in the Kenya Electricity Generating Company Kengen. The following appears in the prospectus: "In accordance with the government of Kenya's policy of divesting its ownership in public enterprises, the government has made available 30 percent of its shareholding in Kengen to be sold to the public. The proceeds of the offer, amounting to about 7.

Kengen is generally regarded as being well run. There was, therefore, no issue of finding a SEP in the sense of securing management. The prospectus does not appear to set out any specific purpose for the IPO other than the furtherance of the government's policy of selling down its ownership in public entities and making members of the public shareholders. It is important to note that the IPO was not undertaken at the insistence of the company, Kengen, but at that of the shareholder, the government.

The proceeds of the sale of shares will be channelled to the fiscus and will not be available to Kengen. While the government has caused Kengen to list its shares to enable it to realise a portion of its investment, in the future, Kengen will bear all the costs associated with the listing of a public company, including additional reporting, corporate governance and general compliance with the requirements of the stock exchange.

The upside for Kengen is that instead of seeking a budget allocation from the government for funding shortfalls that it may experience, it can readily tap the capital markets for its capital expenditure requirements. It will, however, have to demonstrate viability and return to investors. Often an IPO, or even a routine listing, will not proceed without firm commitments from institutional shareholders to purchase the designated shares.

An underwriter to take up shares, in case the listing is not fully supported by prospective shareholders, is also a common feature. So confident was the state of its ability to secure support from ordinary Kenyans for the IPO that institutional shareholders and underwriters were conspicuous by their absence. The total number of shares offered to the public was million.

The sale price was The offer shares were divided into A and B pools. Ninety-five percent of the offer was allocated to pool B for the general public and the balance 5 percent to pool A for employees. The government was so intent on achieving as broad a base of shareholders as possible that, in the event of an oversubscription, applicants were guaranteed only shares each. As it turned out, applications for shares worth The government was a winner all the way. It realised significant proceeds and created a truly broad base of shareholders.

Business Report Opinion.

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Kenya offers and an IPO with and a twist

KenGen Limited has released its prospectus For more information about KenGen Limited and a full library of results, reports and. In the event of liquidation or bankruptcy of a company, bond holders rank higher have higher claim on assets than shareholders do and are thus paid first. This expansion requires significant capital. I wish to say that this article is amazing, nice written and include approximately all significant infos. The economy currently services MW of emergency power to fill the supply gap.

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Looking back on Kengen & Total

Total In October last year, Total Oil held a cocktail party to reassure shareholders after some dismal 9 month results. Now that the results have been finalized, here are some other things shareholders were told at the event. And sure enough in the future outlook for the company, the Kengen prospectus does mention the state will set up a geothermal development company to undertake high risk activities such as exploration and drilling. It will be financed by appropriations from parliament and will take over Olkaria from Kengen.

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