AA Kenya, a leading driving school firm, has successfully raised Sh 81 million through a recent cash call, falling short of the target but demonstrating resilience in a challenging economic climate.
Despite facing hurdles such as high interest rate hikes by the Central Bank of Kenya, AA Kenya’s board highlighted the significance of the capital raised, viewing it as a vote of confidence from shareholders.
The cash call, which ran from October to November last year, saw the sale of 7.76 million new shares to members of AA Kenya Holding Company Limited at Sh25.8 per share, along with an additional offering of Sh3.68 million shares at Sh8 each to company staff.
This capital injection is pivotal to AA Kenya’s strategic goals, which include diversifying its offerings, expanding within Kenya and Eastern Africa, innovating and automating processes, and launching the Africa School of Mobility.
Presently, AA Kenya provides driving schools, vehicle valuation, inspections, membership and road rescue, defensive driver programs, garage inspections, tracking and fleet management, and vehicle service centers. With 57 branches across Kenya and a subsidiary in AA Insurance Brokers, the company is well-established in the market.
Despite economic challenges, AA Kenya reported revenues of Sh433.3 million and a profit of Sh36.3 million in the six months leading up to June 2023, showcasing its ability to thrive amidst adversity.
The success of the cash call underscores AA Kenya’s commitment to growth and innovation, positioning itself as a resilient player in the automotive industry despite external pressures.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
12th March, 2024
