Safaricom IPO Nets a Whopping Sh191 Billion
The much-hyped Safaricom's initial public offer has raked in Sh191 billion in bids from local and international investors. The amount realised is way above the targeted Sh50 billion that the Government hoped to raise from 10 billion shares it offloaded in the market. Preliminary figures show that the local investors have oversubscribed their share offer by close to 254 per cent.
According to preliminary data released by the Government last Wednesday, foreign investors paid a 10 per cent premium price for the issue to attract Sh76 billion ($1.15 billion). Locally, the issue mopped up a staggering Sh115 billion from the money market. The combined bids reflect a subscription rate of 382 per cent, or a 282 per cent over-subscription.
Final results in the local pool will be known over the next few weeks once application processing is finalised. But indications are strong that the investors will not get full subscription even if the plough-back from the international pool is effected.
The East African Standard