Kenya Airways Ltd., sub-Saharan Africa’s third-biggest airline, advanced to the highest level in almost a week after saying it plans to increase its share capital to fund expansion.
The stock gained 0.5 shillings, or 1.6 percent, to 31 shillings by the 3 p.m. close in the capital, Nairobi, the strongest level since Sept. 8.
The proposed offer will be presented to shareholders at a meeting on Oct. 14, the Nairobi-based company said in an e-mailed statement yesterday.
“The story of growth is interesting to investors because a capacity constraint has been one of the reasons the airline has not been able to expand very fast,” Gregory Waweru, an analyst at Nairobi-based Kestrel Capital East Africa Ltd., said in a phone interview today.
The company agreed to buy 10 aircraft from Embraer SA and signed an option to acquire another 16 from the Brazilian manufacturer, Chief Executive Officer Titus Naikuni said Aug. 30.