Kenyan mobile service provider Safaricom's IPO was oversubscribed by 532 percent. Finance Minister Amos Kimunya said after reviewing the applications, foreign investors would receive only 15 percent of the 10 billion shares sold, although they had been earlier promised 35 percent. There was a provision in the IPO conditions that the government could claw back shares from the international pool in the event that the local pool was oversubscribed by over 200 percent, Kimunya said. "The demand is beyond the equity value of the company of KES 200 billion at the offer price of KES 5 per share. It represents a subscription rate of about 532 percent and is a positive endorsement by Kenyans," said Kimunya. East African retail and institutional investors will take the rest of the shares, bringing the issue's value to KES 51.75 billion. Investors subscribed in total for over KES 226 billion in shares, with KES 160.6 billion from local investors and KES 76 billion from international investors, the minister told a media briefing. The retail investors will receive only 21 percent of what they applied for while institutional buyers and international investors will get 31 percent and 15 percent of what they bid, respectively. Safaricom employees will receive 84 percent of what they applied for while Safaricom dealers will receive 31 percent of what they bid. Following the IPO, the public will hold 25 percent of the issued ordinary share capital of Safaricom, with the government holding 35 percent and Vodafone Kenya's shareholding remaining unchanged at 40 percent. Both the government and Vodafone Kenya have agreed not to sell any further shares for a period of at least 180 days following the IPO.
