KQ returns to Dar bourse with record share price gain

A man enters the trading room of the Dar es Salaam Stock Exchange in Tanzania. FILE PHOTO | REUTERS

By MNAKU MBANI

More by this Author

Summary

• The company’s share price jumped by 225 per cent to a closing price of Tsh390 on Monday, higher than Tsh120 recorded on November 20 this year.
• This is the highest point the airline's share price has hit since it cross-listed its shares on the DSE.
• On its comeback at the NSE late last month, KQ's share price shot up by more than 130 per cent to close at Ksh12.50

After suspending trading at the Dar es Salaam Stock Exchange (DSE) on November 20 this year for shareholding restructuring, Kenya Airways returned to the Tanzanian market on Monday with a bang.

The company’s share price jumped 225 per cent to close at Tsh390 (about Ksh18.09) on Monday, higher than Tsh120 (about Ksh5.57) recorded on November 20 this year.

This is the highest point the airline's share price has hit since it cross-listed its shares on the DSE.

The price rise comes amid increased investor activity at the Dar bourse following consolidation of its shares that effectively increased units issued from from 1.49 billion to 5.82 billion.

READ: Banks get boost as KQ gains Sh52.3bn in a day

Suspend trading

Last month, the management of Kenya Airways requested to close the register and suspend trading for a period of two weeks. The suspension facilitated the share split and simultaneous consolidation of its shares as 10 Kenyan banks converted Ksh22 billion debt to equity.

Following the restructure, the government’s stake has increased to 48.9 per cent from 29.8 per cent while KQ Lenders Co - the special purpose vehicle formed by the lenders – controls a 38.1 per cent stake.

KLM Royal Dutch Airline’s stake now stands at 7.8 per cent, KQ’s Employee Share Ownership Scheme (ESOP) now owns 2.4 per cent and other shareholders own 2.8 per cent.

On its comeback at the Nairobi Securities Exchange (NSE) late last month, KQ's share price shot up by more than 130 per cent to close at Ksh12.50, from its last closing price of Ksh5.30 before the suspension.