London listed firm cross lists in Nairobi - CNBC Africa

London listed firm cross lists in Nairobi

East Africa

by Elayne Wangalwa 0

London listed logistics firm, Atlas Development has cross listed on the Nairobi bourse through introduction.

The Nairobi-headquartered support services and logistics company sold 39.2 million shares, equivalent to 10 per cent of the company’s share capital, at 11.50 Kenya shillings.

The logistics firm raised 450 million Kenya shillings through a private placement to Kenyan investors in order to consolidate its presence in the oil and gas services sector.

“The strong interest from Kenyan investors is recognition of the opportunity to create a world class development and support services provider in Eastern Africa. We have demonstrated robust financial performance, world class service delivery and regional scale to position Atlas as the best way to gain exposure to this opportunity,” Atlas CEO Carl Esprey said in a statement.

The firm is the first upstream oil company to go public with the listing on the Nairobi Securities Exchange (NSE’s) Growth and Enterprise Market Segment (GEMS). Atlas which provides support services targeting the oil and gas exploration and production industries, as well as other extractive industries in Kenya, is the first of its kind to be double listed as it is already listed on London’s Alternative Investment Market (AIM).

According to Esprey, proceeds from the listing will be applied towards its growth initiatives having already gratified its current financing requirements after a successful in August. The firm is intending to help boost development and expand its existing support services business in East Africa.

“We’re Kenyan-headquartered and our core operation was founded here in Nairobi. Today we’re proud to also call ourselves a Kenyan-listed company. The cross listing will provide further local support for Atlas and represents a natural alignment with our Kenyan stakeholders and customers,” said Esprey.

Andrew Wachira, acting CEO at the NSE said, “The cross listing of Atlas is another major step towards our goal of ensuring that companies that have substantial operations in Africa are accessible to both Kenyan and international investors. This cross listing is historic for our exchange and it is directly in line with Vision 2030, which envisions that the growth in Kenya’s natural resources industries will also help grow our financial institutions.”