Express Kenya Plans Cash Call with Sale of 50 Million Shares
Express Kenya, one of the country’s leading transport companies, has announced plans to raise capital through a cash call that will see the issuance of 50 million shares, as the company seeks to reduce its mounting debt and improve its financial position.
Debt Reduction Strategy
The cash call comes at a critical time for the company, which has been grappling with rising operational costs and a challenging economic environment. The firm has been struggling with debt levels that have been weighing on its profitability, and the share sale is seen as a way to strengthen its balance sheet.
According to sources familiar with the matter, the company has already sold three acres of land for KSh 300 million as part of its efforts to cut debt and boost cash reserves. The latest share sale is expected to raise an additional KSh 1.5 billion.
Share Sale Details
The 50 million shares are expected to be offered at a premium to the current market price, with the company targeting institutional investors and existing shareholders. The offer will be open for a limited period, and the company has indicated it will provide more details on the pricing and allocation process in the coming days.
What This Means
The cash call is a significant move for the company and could set the tone for other transport firms facing similar financial pressures. With rising fuel costs and regulatory changes, the sector has been under intense pressure, and the Express Kenya example could inspire similar capital-raising exercises across the industry.
