KenGen Kenya Surges as Profit Quadruples; Cash Call PlannedBy
Company plans to raise 28 billion shillings in cash call
Full-year profit quadrupled to 11.5 billion shillings
Kenya Electricity Generating Co. shares jumped after it announced full-year profit quadrupled and set out plans to raise 28 billion shillings ($272 million) in a rights offer early next year.
The stock gained as much as 33 percent and traded 16 percent higher at 9.60 shillings by 11:01 a.m., heading for its biggest gain in more than nine years.
KenGen, as the company is known, on Monday reported profit of 11.5 billion shillings in the year through June from 2.83 billion shillings a year earlier, citing a tax credit and growth in its geothermal-power capacity. Revenue climbed 45 percent to 26.2 billion shillings.
KenGen has picked Standard Investment Bank and Renaissance Capital as advisers for the planned cash call, which is set to take place in the first quarter of 2016, Finance Director John Mudany said in an interview on Tuesday. Kenya’s government, which holds 70 percent of the company, is expected to take up its rights, Mudany said. The proceeds will fund a reorganization of KenGen’s balance sheet, while the company also plans to raise $1.7 billion in long-term debt, he said.
The company currently has 1,611 megawatts of installed capacity and plans to increase that to 2,122 megawatts, Chief Executive Office Albert Mugo told reporters.
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