Bourse IPO hit a record 763pc bids, over Sh4.7bn

NSE Cchief executive Peter Mwangi (left), Treasury Cabinet Secretary Henry Rotich (centre) and NSE Chairman Eddy Njoroge during the announcement of the NSE's IPO. The sale of NSE shares through an IPO received an oversubscription of 663 per cent, the biggest in the 60-year history of the Kenyan markets. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• Investors have been allocated the minimum number of shares applied for (500 offer shares) in the first instance and thereafter to receive new shares in multiples of 100 offer, on a pro rata basis, rounded down to the nearest 100 offer shares, NSE said.

By NATION REPORTER
More by this Author

The sale of Nairobi Securities Exchange shares through the initial public offer received an oversubscription of 663 per cent, the biggest in the 60-year history of the Kenyan markets.

The bourse said in a statement Tuesday that investors had applied for 504,189,700 new shares worth Sh4.78 billion, which is more than 763 per cent its target of raising Sh627 million by selling 66 million new shares.

“The results are a clear indication of the demand from domestic and international investors for investment opportunities in the capital markets. Applications were received from 17,859 investors,” the statement said. The shares were sold at Sh9.50 each.

Investors have been allocated the minimum number of shares applied for (500 offer shares) in the first instance and thereafter to receive new shares in multiples of 100 offer, on a pro rata basis, rounded down to the nearest 100 offer shares, NSE said.

“We would like to assure all our investors that the process of making refund payments is already underway and will be completed before the shares start trading on September 9, 2014,” chairman Eddie Njoroge said.

After the self-listing, the NSE will join the Johannesburg Stock Exchange (JSE) as the second listed exchange in Africa.