KENYA AIRWAYS SHARE RIGHTS ISSUE LAUNCHES ON 12 MARCH
Next Monday will be the long awaited start of Kenya Airways share rights issue, which has been in the making for several months now and received all company internal approvals via board resolutions and AGM votes, before securing the required regulatory approvals from the financial market watchdog.
Major shareholders KLM / Air France and the Kenyan government have already indicated that they intend to maintain their shareholding percentage by taking up the offer and other shareholders too are expected to subscribe to the offer, helping The Pride of Africa to raise the capital required to begin financing the current expansion drive, which has seen KQ commit to 9 B787 Dreamliners with a further 4 options and a sizeable additional order for Embraers E190 regional jets.
The financial markets have been keenly anticipating this event and it is generally seen as a testing ground to establish how the Kenyan and regional economies have been holding up to the pressures of the Eurozone crisis and other negative global economic data.
Kenya Airways is cross listed at the three main stock exchanges in Nairobi, Kampala and Dar es Salaam, on of the first major companies from Kenya to do so and spread ownership into the wider region.
Other airlines in Kenya and across East Africa will also be watching how the share right issue is being taken up as it is an additional indicator how the public and inparticular investors view the aviation industry in the region, with Kenya Airways of course being THE predominant force across the East African Community. Expect live reporting from the launch ceremony on Monday in Nairobi, so watch this space.