The Kenya Pipeline Company’s initial public offering achieved a 105pc subscription rate with investors applying for 12.5 billion shares.
Treasury Cabinet Secretary John Mbadi says despite the oversubscription, government will only accept bids equivalent to the targeted Ksh 106 billion.
Institutional investors will be the largest shareholders of the Kenya Pipeline Company, controlling 41pc of the company.
According to Mbadi, the amount raised through the IPO will support operationalization of the National Infrastructure Fund whose bill is expected to be signed into law next week as the government anticipates its passage by the National Assembly on Thursday.
The post IPO shareholding will see National Social Security Fund (NSSF) and other local institutional investors hold 41pc stake of Kenya Pipeline,.
East African Community investors will have a 21.22pc controlling stake with the Uganda National Oil Company controlling the larger EAC share that also saw Rwandese pension fund purchase a stake.
The Government of Kenya will retain 35pc of KPC, with 10 oil marketing companies allocated 0.014pc shares.
Mbadi said the government plans to continue with the divesture strategy to raise funds from mature assets as seed capital for the infrastructure fund.
The KPC IPO is the first state-backed listing on the Nairobi Securities Exchange (NSE) in seventeen years after Safaricom IPO in 2008.
