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KA-INVESTOR

• September 26, 2009
• KenGen PIBO: Greenshoe Option Kicks In

  Posted: September 26th, 2009, 4:10am EDT

  As highly anticipated, the KenGen PIBO has likely been oversubscribed and the green shoe option will be put to effect.
  

  Greenshoe Option:
  “A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected. Legally referred to as an over-allotment option” – Investopedia.com

  Upon oversubscription of the initial Ksh.15 billion, the Company has an option of increasing the offer amount to up to Ksh.25 billion (an additional ksh.10 billion). The main contributors to this oversubscription are institutional investors, but we’ll be getting the final results of the sale p on October 30th. The bonds will be listed on the NSE on November 9th.
  
  The offer closes on Tuesday 29th next week and despite doing a summary of the offer information memorandum the first day the offer opened; I’ve managed to be caught in the last minute rush. Like a typical Kenyan “naomba serikali ituongezee siku kadha” (I’m [shamelessly] asking the government to add a few more days to the offer!) #FAIL