AA Kenya PLC (AA Kenya) has announced a Restricted Public Offer (RPO) seeking to raise capital from its shareholders dedicated to funding AA Kenya’s strategic initiatives. This includes diversification into new lines of business, geographical expansion, digitization, and the establishment of a mobility center of excellence.
This announcement follows an approval from the Capital Markets Authority (CMA) for the company to raise capital from its members.
Making the announcement, AA Kenya Chief Executive Officer Francis Theuri said this approval is a remarkable milestone for AA Kenya and a big win that would enable AA enhance its services to its members and the community.
This RPO is restricted to AA shareholders, giving them first priority to take up stake in AA Kenya. The offer is scheduled to run from October 11, 2023 to November 27, 2023.
This is part of our transformative journey to redefine our Strategic Plan for 2022 – 2026, with a key focus on diversification, expansion, and global alignment to Federation Internationale de l’Automobile (FIA) standards,” said Mr Theuri.
The demutualization journey began with an Extraordinary General Meeting (EGM) where the decision to demutualize and raise capital was approved by members.
Subsequently, AA joined the Nairobi Securities Exchange (NSE) Ibuka Acceleration Program, positioning the organization to become investor-ready through various capital market options available at the NSE.
” We invite our shareholders to be part of our promising future through this Restricted Public Offer. With your support, the Board’s unwavering commitment, alongside the collective expertise within our organization, will drive AA Kenya to new heights.” Theuri said.
To guide and facilitate this transformative journey, AA enlisted the expertise of leading transaction advisors, including MMC Asafo Africa, Standard Investment Bank, and PKF East Africa. Two new entities, namely Automobile Association Holdings PLC (AA Kenya HoldCo) and AA Kenya PLC (AA Kenya), were incorporated to streamline operations and facilitate the transition.
Following the RPO, AA Kenya plans to list by introduction on the Main Investment Market Segment (MIMS) of the NSE.