Business News
Shares in Kenya's Safaricom jump 50 per cent on trading debut
Jun 9, 2008, 11:30 GMT
Nairobi - Shares in Kenyan mobile telecommunications firm Safaricom rose by 50 per cent on their first day of trading Monday months after Kenya's biggest public offering.
Stocks were trading at an average of 7.5 Kenyan shillings (0.12 dollars) compared to the initial share price of 5 shillings.
The government sold a 25-per-cent stake in Safaricom in March, meaning 10 billion shares were up for grabs.
Eager Kenyans and foreign investors oversubscribed the offering by in excess of 500 per cent, despite the post-election violence that saw over 1,500 people killed and doubts cast over the stability of the East African nation.
Some 860,000 investors procured shares in Kenya's most profitable company, with foreign investors having to pay a 0.5 shilling-per- share premium over the 5 shillings locals paid.
There is huge room for growth in Kenya's mobile phone market, with penetration of only around a third of the 32 million inhabitants.
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