The Kenya Pipeline Company’s Initial Public Offer (IPO) will reward transaction advisers and other agencies involved with Sh3 billion earnings.
These funds shall reflect the 2.8 percent amount of fees that shall be given to transaction advisers, investment banks and lawyers for facilitating the Kenya Pipeline IPO.
The IPO went live at the Nairobi Securities Exchange (NSE) on January 19 and shall run until February 19, 2026. It has been priced at Sh9 per share.
According to the IPO prospectus, the government has allocated the public 60 percent of the 11.81 billion shares that are on offer.
If this allocation is fully subscribed, the government will collect a total of Sh106.3 billion, from which gross the Sh3 billion advisory fees shall be redeemed.
According to the National Treasury, 20 percent -equivalent to 2.36 billion shares in the IPO -have been set aside for local retail and institutional investors. 15 percent – equivalent to 1.77 billion shares – has been set aside for oil marketing companies operating in Kenya while 5 percent – equivalent to 590.3 million shares – has been set aside for Kenya Pipeline employees.
Foreign investors and investors from the East African Community have been allocated 20 percent of the shares on offer during the IPO.
In case the IPO is oversubscribed, the National Treasury says that local Kenyan investors shall be given the first priority.
In the IPO, stockbrokers and investment will be some of the biggest gainers with Sh1.59 billion earnings in fees.
In this trade, the National Treasury has appointed 22 intermediaries to handle the sale. These include Faida Investment Bank which shall also be paid Sh98.6 million for leading the transaction in addition to the placement fee.
Others are Dyer and Blair Investment Bank which is the lead sponsoring broker, and Francis Drummond which is a co-sponsoring broker. At the same time, the National Treasury has enlisted the Co-operative Bank of Kenya, KCB Bank, and Stanbic Bank as the receiving banks.
Co-op Bank will pocket Sh9.96 million, KCB Bank Kenya Sh3.6 million, and Stanbic Bank Kenya Sh2.78 million. PriceWaterhouse Coopers LLP shall pocket Sh13.45 million as the IPO’s reporting accountants.
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