Kenya Airways Ltd. (KNAL), sub-Saharan Africa’s third-biggest carrier, rose the most in more than three weeks as the shares traded for the first day without a premium attached to a rights offer.
The stock climbed 3.6 percent, the most since March 26, to close in Nairobi at 14.5 shillings, the highest price since March 20.
Kenya Airways is seeking to raise $250 million in a rights offer, with the airline offering 1.48 billion shares at a ratio of 16 for every five held. Until yesterday’s deadline for the offer, non-shareholders paid the market price for the shares plus a 5 cents premium, according to an official at the carrier. From today only the market price applies, which makes the shares at least 5 cents cheaper, he said.
“It is a psychological ceiling that has now been removed,” George Bodo, an equity strategist at Nairobi-based Apex Africa Capital Ltd., said by phone today.
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