This represents a 10 per cent premium to the local offering price, an unprecedented structure and premium level when compared to past transactions around the world.

The Safaricom IPO generated over USD 1.25 billion (KShs 76 billion) in bids from established international institutional investor names providing the company with a secure international investor base.

The IPO has far exceeded the goals laid out at the launch of this process; namely: deepening Kenya's capital markets, maximizing revenues for the Treasury and increasing international investor interest in the Nairobi Stock Exchange.

The IPO was able to successfully introduce the bookbuilding approach to pricing IPOs, price the international pool at a premium to the local offer price and attract a large number of leading global investors.

Upon completion, the Safaricom IPO will be the Largest Sub-Saharan IPO ever completed surpassing those of SANLAM and Telkom S. A (both from South Africa).

On a pan-African basis it will be the third largest IPO after those of Maroc Telecom and Telecom Egypt.

International institutional investors from every continent participated in the bookbuilding process.

The Treasury and Privatization Commission concluded that the level of demand at the clearing price would ensure that the government realized its goals of maximizing revenues while ensuring adequate after market support for the stock after the commencement of trading expected on June 9th 2008.

The Treasury and Privatization Commission accompanied Safaricom's management on the international roadshows meeting prospective investors in London and Johannesburg, reviewed the order book and all the accounts submitting bids to ensure an appropriate investor profile and will determine the final allocations in both the local and international pools.

With regard to the local tranche of the transaction, where processing is still ongoing, initial indications suggest that more than 750,000 applicants participated in the IPO generating almost KShs 115 Billion (approximately USD 1.9 Billion) in local demand.

Final results in the local pool will only be known over the next few weeks once application processing is finalized.

Allocations are expected to be announced on 30th May 2008; electronic crediting of CDS Accounts and dispatch of shares is expected to commence by 4th June with trading on the Nairobi Stock Exchange expected to commence on 9th June.

Following the IPO, the public will hold 25 per cent of the issued ordinary share capital of Safaricom, with the Government of Kenya holding 35 per cent and Vodafone Kenya Limited's shareholding remaining unchanged at 40 per cent.

Both the Government of Kenya and Vodafone Kenya Limited have agreed not to sell any further shares for a period of at least 180 days following the IPO.

Morgan Stanley and Dyer and Blair are acting as the Lead Transaction advisors for the offering, with Morgan Stanley acting as the Sole Global Coordinator and Sole Bookrunner.