Kenya's state-run pipeline company achieved a successful initial public offering, with investor demand exceeding the target by 5.7%. The National Treasury reported that applications poured in for 12.5 billion shares of Kenya Pipeline Co., surpassing the 11.8 billion shares offered. This marks the East African nation's first such sale in over a decade, signaling renewed investor confidence in Kenya's privatization efforts.

Treasury Secretary John Mbadi announced that proceeds from the IPO will fund the National Infrastructure Fund, a $31 billion initiative unveiled by President William Ruto in October. The 65% stake sale valued Kenya Pipeline at 163.6 billion shillings ($1.3 billion) and closed on February 24. A significant boost came when Uganda National Oil Co. invested $255.4 million for a 20.15% stake, demonstrating regional interest in Kenya's infrastructure assets.

The shares are scheduled to begin trading on the Nairobi Securities Exchange on March 9. Despite the strong demand, analysts from several investment banks had previously cautioned that the IPO price of 9 shillings per share was too high, with some estimating the intrinsic value at less than half that amount. This mixed reception highlights the ongoing debate about asset valuations in Kenya's privatization program.