AA Kenya offers 11.4m shares in Sh229 million cash call

Automobile Association of Kenya (AA) employees led by their CEO Francis Theuri (in suit) at a past event. PHOTO | LUCY WANJIRU | NMG

Auto services firm, AA Kenya has offered 11,444,880 shares to its members and employees as it targets raising Sh229.73 million in new capital through a restricted offer.

In the transaction, the company will offer 7,762,881 shares to members at an offer price of Sh25.80 and an additional 3,681,999 shares at a par value of Sh8 for its employees.

Read: AA Kenya selling shares at Sh50,000 in capital raise

The funds will be used to scale up the business through diversification and expansion. “One of the pillars of our strategy is to scale up the business through diversification and expansion, benchmarking AA Kenya to other AA organisations globally, and align to Federation Internationale de l’Automobile (FIA) standards,” AA Kenya chief executive officer, Francis Theuri, said in a statement on Wednesday.

AA is an affiliate of FIA, the governing body for world motor sport and the federation of the world’s leading mobility organisations.’’

AA Kenya offers services to members including roadside assistance, information, and advice about the purchase, maintenance, and repair of vehicles.

According to the latest data, AA Kenya reported a net income of Sh11 million in 2020, down from Sh79 million in 2019 attributable to the impact of Covid-19 on its business.

Sales over the review period declined to Sh472 million from Sh722 million. AA Kenya projected its revenue and profits to grow exponentially over the medium term from the actual performance in the past.

This cash call is the second restricted offer that has been approved by the Capital Markets Authority in the past three weeks.

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About two weeks ago the market regulator approved the issuance of Kenya’s debut Sukuk by Linzi Finco Trust seeking to raise Sh3 billion.

AA Kenya in 2022 unsuccessfully tried to raise capital through demutualisation.

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