Kenya Pipeline Company's shares traded marginally higher in early trade on Tuesday after listing on the Nairobi stock exchange, LSEG data showed.

At 0715 GMT the shares were trading at 9.4 shillings, compared to the Initial Public Offering (IPO) price of 9 shillings per share.

The Kenyan government sold a 65% stake in the pipeline company, raising 106.3 billion shillings ($823.07 million), in the East African country's first major IPO in nearly two decades.

The IPO was oversubscribed, despite earlier concerns over lower valuations from some banks, an extended offer period and local media reports of investor apathy.

Proceeds to be partially used to expand Kenya's main airport

The government has said it will use 15 to 20 billion shillings of the proceeds from the IPO to expand the country's main airport in the capital Nairobi.

With limited fiscal space for tax or debt-driven development, President William Ruto's administration has turned to securitising revenue streams and selling state-owned assets.