Rising interest rates is causing investors to shift to high yielding government bonds from the equities market, leaving potential companies seeking to raise new capital through the sale of shares to the public holding on for fear of undersubscription.
The Capital Markets Authority (CMA) disclosed that lucrative yields on government bonds, anti-finance bill 2024 protests by the Kenyan youth popularly referred to as Gen-Z in June, and the borrowing options granted by commercial banks have further convoluted the initial public offerings (IPOs) environment, leaving potential issuers with hard choices to make on their funding plans.
