According to Safaricom’s shareholder register as of June, retail investors took advantage of Safaricom’s falling share price and foreign investors’ willingness to sell, purchasing an additional 51.9 million shares valued at Sh890 million between March 2022 and June 2023. Most of these investors held between one and 100,000 shares, with their numbers largely unchanged at 532,870, decreasing only by a mere 58. This indicated existing investors accumulating more shares rather than new ones entering the market. However, over a longer period, the number of investors in this category had decreased significantly from 822,122 in March 2009.
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Investors holding between 100,000 and one million shares increased their stockholding by 80.8 million units to reach 508.1 million shares, with their number rising to 1,907. On the other hand, those holding between one and 10 million shares experienced a decrease in both numbers and volume of shares, suggesting that foreign investors were selling to local retailers. This group sold 138.4 million units during the period, reducing their holdings from 1.746 billion to 1.608 billion. Furthermore, the number of investors in this category decreased by 25 to 492.
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As the largest listed firm on the Nairobi Securities Exchange (NSE) in terms of market capitalization, the number of investors and issued shares, Safaricom has managed to attract both retail and institutional investors across various ownership bands. During its IPO in 2008, the company saw 896,213 new brokerage accounts opened as retail investors sought to invest in the Company. However, Safaricom’s share price remained below the IPO value for several years until a rally in late 2013 led to higher valuations. At the time, the rise in share prices encouraged small investors to sell their shares, while institutional buyers like local and foreign insurance companies, pension funds, and investment firms took advantage of the opportunity to buy these shares. The appeal for institutional buyers lies in their ability to hold onto the shares for an extended period, weathering market downturns and earning dividends over time.
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