The Automobile Association of Kenya (AA Kenya) has announced a Restricted Public Offer (RPO) to raise capital from its shareholders.
AA Kenya says the strategic decision aligns with its plan to diversify into new business lines, expand its geographical reach, and establish itself as a mobility centre of excellence.
The RPO, a type of securities offer made only to professional investors in a restricted market sub-segment, was announced in a public notice on Monday, October 9.
The capital raised from the offer will be used to digitize operations, marking a key step in AA’s strategic evolution.
This announcement comes on the heels of the successful completion of AA’s demutualization journey and approval from the Capital Markets Authority.
AA’s CEO, Francis Theuri, hailed the approval as a significant milestone and expressed confidence that the investment strategy and shareholder support would propel the company to new heights.
In an invitation to shareholders, Theuri said, “We invite our shareholders to be part of this promising future through this Restructured Public Offer.”
As per the notice, priority in the RPO will be given to AA’s shareholders and staff members.
To facilitate this transformative journey, AA has enlisted leading transaction advisers including MMC Asafe Africa Standard Investment Bank and PKF East Africa.
The auto services firm is offering 11,444,880 shares to its members and employees and aims to raise Sh229.73 million in new capital through the restricted offer.
The offer is scheduled to run until November 27, 2023.
Following the restricted public offer (RPO), AA Kenya plans to list by introduction on the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange.