Kenya Airways PLC shares recorded a historical gain of 135.85 percent at the price of 12.50 shillings per share after a successful re-listing on the Nairobi Securities Exchange (NSE) on Wednesday.
The shares had been temporarily suspended for two weeks to enable a share split and simultaneous consolidation of the company’s stock as part of the airlines successful financial and capital restructuring plan.
Early in the day, the carrier touched a high of KSh12 by 11am from its last trading price of KSh5.30.
The restructuring saw the Government increase its shareholding to 48.9 percent of the ordinary voting shares with the consortium of local banks through a special purpose vehicle – KQ Lenders Company 2017 Ltd – owning 38.1 per cent shares of the airline after having the debt owed to them by KQ converted to equity.
KLM as result of its in-kind contribution will have a shareholding of 7.8 percent and the balance, of 5.2 percent, between other shareholders and a new employee share ownership Plan (ESOP).
“The restructuring makes us competitive and sets us on a path of profitability with a healthy liquidity. We appreciate all the work that went into ensuring we continue to turnaround this airline and secure its future,” said KQ chief executive Sebastian Mikosz on Wednesday.
The listing of new shares comes at a time when the NSE is experiencing a rebound in activity as investors flock back to the bourse following months of political turmoil.
“We applaud Kenya Airways for boldly using this process of a debt-equity restructuring, which we believe will result in the company having a lower debt profile and moving in on a better financial footing. The company’s continued growth and expansion supported by the capital markets is a fine example of the abundant opportunities our market offers,” said NSE chief executive Geoffrey Odundo during the bell ringing ceremony to commence the carrier’s relisting.
Kenya Airways PLC will continue to be listed in the Ugandan and Tanzanian stock exchanges as well.