The Automobile Association of Kenya (AA Kenya) has announced a Restricted Public Offer aimed at raising capital from its shareholders.
According to the Nairobi Securities Exchange, a restructured public offer is an issue or an offer of securities. The offer is made only to professional investors in a restricted market sub-segment.
In a public notice published on Monday, October 9, AA noted that the move is in line with its strategic plan seeking to, among others, diversify into new lines of business and expand its geographical scope.
Additionally, AA will look to leverage capital raised from the offer to achieve its goal of digitizing operations and establishing itself as a mobility center of excellence.
This move follows the successful completion of its demutualization journey, and approval from the Capital Markets Authority.
In his remarks, AA’s CEO Francis Theuri described the approval as a significant milestone in the organization’s strategic evolution.
Further, Theuri expressed his confidence that the investment strategy and support from its shareholders would yield fruits and propel the company to greater heights.
“We invite our shareholders to be part of this promising future through this Restructured Public Offer,” Francis Thueri, the CEO of AA noted.
As per the notice, AA will give priority to its shareholders and staff members in the RPO.
To guide and facilitate this transformative journey, AA has enlisted the expertise of leading transaction advisers, including MMC Asafe Africa Standard Investment Bank, and PKF East Africa.
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Consequently, the auto services firm has offered 11,444,880 shares to its members and employees. AA Kenya targets to raise Sh229.73 million in new capital through the restricted offer.
“The offer is scheduled to run from October to 27 November 2025. 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,” announced AA Kenya CEO Francis Theuri through the statement.
The restructuring of the Automobile Association of Kenya
Automobile Association of Kenya has been on a demutualization journey since its last Extraordinary General Meeting. The decision to demutualize and raise capital was approved by its members.
Demutualization is the process where a company or entity seeded (initially invested) by private investors is legally changed into a public traded company that is owned and funded by shareholders.
Some of the advantages of demutualization include raising lower-cost forms of capital funding from outside sources.
Subsequently, AA joined the Nairobi Securities Exchange (NSE) Ibuka Acceleration Program. This positions the organization to become investor ready through various capital market options available at the NSE.
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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.
In 2022, AA Kenya unsuccessfully tried to raise capital through demutualization.
About AA Kenya
AA Kenya was established in 1919. It is hailed as the first mobility services provider in the region.
Over the last one hundred years, AA offerings have evolved which include towing, road assistance and recovery service.
Moreover, AA Kenya also provides Driving School services that include the training of new drivers as well as refresher programs.
Additionally, AA Kenya also offers vehicle inspection and valuation services, which are primarily offered to insurance companies, banks, corporates, and other institutions.
