In a win for the small investor, transaction advisors for the Kenya Pipeline Company (KPC) IPO have confirmed that shares will be allocated on a pro-rata basis. This ensures that the "big fish" do not swallow the entire bait, giving Wanjiku a fair shot at owning a piece of the national asset.

The fear in every oversubscribed IPO is that latecomers or small bidders get zero allocation. The pro-rata system eliminates this bias. [...](asc_slot://start-slot-17)If you applied, you get something. It is a mathematical application of equity.

How It Works

If the offer is oversubscribed—as expected—every investor will receive a percentage of what they applied for, relative to the total demand. This prevents a situation where institutional investors corner the market.

• Inclusivity: The government is keen to see broad-based ownership to politically insulate the privatization.
• Refunds: Any unallocated cash will be refunded swiftly to bank accounts or MPESA, maintaining market confidence.

With the offer closing on February 19, this assurance is the green light for retail investors to jump in. The message is simple: there is enough pipeline for everyone.