Nairobi Securities Exchange lifts Kenya Airways buying and selling suspension after 5 years
Nairobi Securities Exchange lifts Kenya Airways buying and selling suspension after 5 years
Monday 06th January, 2025 10:03 AM|
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After 5 years of being within the chilly, the Nairobi Securities Exchange (NSE) has lifted the buying and selling suspension imposed on nationwide provider, Kenya Airways.
In an announcement on Monday, January 5, 2025, the bourse introduced the readmission of Kenya Airways to the shares buying and selling after returning to profitability.
Kenya Airways shares had been suspended from buying and selling in 2020 after the federal government introduced plans to renationalise the airline. This was adopted by the tabling of the National Aviation Management Bill 2020 which sought to offer powers to the nationwide provider to realign its operations with the assistance of the federal government.
However, in an announcement, Kenya Airways introduced that the readmission of Kenya Airways adopted the withdrawal of the National Aviation Management Bill 2020.
“Notice is hereby given of the lifting of the suspension within the buying and selling of Kenya Airways Pic securities, efficient January 5, 2025.
“The suspension on the trading of Kenya Airways PLC shares was lifted following the company’s recent performance which saw the company record a profit after tax and the withdrawal of the National Aviation Management Bill 2020,” NSE introduced.
NSE additional defined that lifting the suspension adopted the approval of the Capital Markets Authority and notified all shareholders of the brand new improvement.
“The lifting of the suspension was authorised by the Capital Markets Authority pursuant to part 11(3)(w) and Section 22A of the Capital Markets Act (Chapter 485A).
“All shareholders, investors and the general public are advised to take note of the lifting of the suspension in the trading of Kenya Airways Plc shares,” NSE defined.
Notice is hereby given of the lifting of the suspension within the buying and selling of Kenya Airways Plc securities, efficient January 5, 2025.
The suspension was lifted following the corporate’s latest efficiency and the withdrawal of the National Aviation Management Bill 2020.@CMAKenya… pic.twitter.com/KFLwUo3lgB
— NSE PLC (@NSE_PLC) January 6, 2025
Suspension
KQ was suspended after the federal government mooted the plan to nationalise the airline. This was after the airline slid into insolvency in 2018 attributable to money owed that had gathered.
At that point, Kenya Airways was additionally recording losses after losses elevating considerations amongst stakeholders and the federal government.
After evaluating the state of affairs, NSE suspended KQ shares from trading after receiving a nod from the Capital Markets Authority.
“Kenya Airways Plc (KQ) has utilized for suspension of buying and selling in its shares and closure of register, efficient from 3 July 2020, for a interval of three calendar months.
“Following the tabling of the Kenya Aviation Management Bill 2020 in Parliament on June 18, the price of Kenya Airways shares went up as investors bought the shares in anticipation of being bought out by the government at a premium. The COVID-19 pandemic and the prospect of a Government Buy-Out may also have created a buyer’s market, as share prices were at an all-time low,” Kenya Airways mentioned in an announcement issued on July 10, 2020.
In the yr ending December 2023, Kenya Airways recorded an operating profit of Ksh10.5 billion, the primary since 2017. The important achieve was excessive in comparison with an working lack of Ksh5.6 billion in 2022, representing a 287 per cent development.
