The Nairobi Securities Exchange (NSE) is set to list in the coming weeks after it got regulatory approval, signalling possible conclusion of a long-winding and often acrimonious process.

The NSE board said that the IPO will open on July 24 and will run up to August 12.

“This follows the June 27, 2014 approval by the Capital Market Authority (CMA) of the application of the Company to offer its shares to the public through an IPO and subsequently self-list its shares on the Main Investment Market Segment (MIMS) of the NSE,” said the NSE in a statement.

“Further to the CMA approval of our self-listing process, we wish to inform you that the transaction advisors and the NSE management and board of directors are finalising the modalities for the self-listing, which we intend to launch during the month of July 2014. Please brief your members accordingly,” said NSE chief executive Peter Mwangi in a letter to the Kenya Association of Stockbrokers and Investment Banks (Kasib).

The industry lobby said the listing should also give confidence to other companies wishing to list.

“We will have more convincing arguments when we tell other companies to list,” said Kasib chief executive Willie Njoroge.

The NSE is supposed to list the shares in an initial public offering that will see the founder members reduce their shareholding.
The bourse is owned by 22 member firms that control 90 per cent of the shareholding, while the Treasury and the Investor Compensation Fund jointly own the remaining 10 per cent.

The stake held by the 22 shareholders is expected to be reduced by 40 per cent within three years after listing.
Shareholders had earlier agreed to increase the number of shares to 850 million with Sh1 par value each from 25 million at the bourse’s annual general meeting (AGM) held in April.

The NSE will join the Johannesburg Stock Exchange as the other exchange in Africa that has self-listed.

Source: Business Daily
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