The long-awaited IPO of Kenya's largest mobile servicer provider, Safaricom, has kicked off and is expected to close on 23 April on the Nairobi Stock Exchange. The Kenyan government is offering 10 billion shares worth at least KES 50 billion in a major test of investor confidence after a violent post-election period. The offer has been divided into two pools – domestic and international. The offer shares are priced at KES 5 each, which implies an equity value of Safaricom of KES 200 billion. The government is seeking to sell a 25 percent stake, reducing its holding to 35 percent and leaving Vodafone as the largest shareholder with 40 percent. The offer, billed to be the largest transaction in the East and Central Africa region, is open to all citizens of the East African Community member states. Such investors form the retail pool, which will get 3.38 billion shares, which is 52 percent of the 6.5 billion shares allocated for the domestic pool. Safaricom has a subscriber base of 10 million. Last year, the company's operating profit rose to KES 425 billion from KES 300 billion the previous year.
