The Co-operative Bank IPO struggling

The Co-operative Bank KES 35bn IPO was launched on Thursday 30 October but may be facing possible local under-subscription.

In any IPO, the capital markets regulations specify that at least 40% of the shares must be taken up by local investors which presents the company with a problem. In the event that all the 40% of the shares are not taken up, balance can be applied for by foreign investors after approval is granted by the Capital Markets Authority (CMA).