Kenyan leather products retailer Nairobi Business Ventures (NBV) which operates as K-Shoe has been successfully listed by introduction at the Nairobi Securities Exchange, floating 23.6 million shares at a cost of KSh5 a share.
An introduction is an application for listing of shares already in issue where no marketing arrangements are required.
The firm, which listed under the Growth and Enterprise Market Segment (GEMS) has also announced plans to expand its retail stores in the next couple of years as well as venture into manufacturing as an alternative to selling already processed goods, as it exports raw materials and imports finished products, under the umbrella firm of leather manufacturers that the country is looking to build in the country.
Speaking at the bell ringing Ceremony, Vasu Abotula, NBV’s Chief Executive Officer mentioned plans by the government to create a central leather manufacturing plant in the country and NBV’s vision for the future. “NBV projects to achieve a total market share of 1-2 per cent of the total market demand for shoes in the next five years.”
The retailer, a first from the leather industry to be listed on the Nairobi bourse, opened with a market capitalisation of KSh118 million ($1.2mn) after it raised Ksh28 million from 26 shareholders.
GEMS was set up by the Nairobi Securities Exchange for small and medium enterprises in 2013 to increase the scope of companies that can list on the bourse by reducing cumbersome requirements. Companies listing under this plan need a minimum of 100,000 shares in issue, a competent board and senior management – with at least one year experience in the business. For more details on the requirements read Eligibility criteria for listing on GEMS.
Speaking at NBV’s inaugural listing, Capital Markets Authority CEO, Paul Muthaura, emphasised the future of GEMS as a platform for SMEs to gain capital: “The GEMS segment is where we see the growth coming, when you see the fundamental nature of our economy and opportunities for long-term growth.”
By: Humphrey Ngugi.
Photo: Capital FM.
Review: Emerging Market Formulations &
Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam