Flame Tree Group set to list 15% stake on NSE - CNBC Africa

Flame Tree Group set to list 15% stake on NSE

IPO

by Elayne Wangalwa 0

Flame Tree Group, a Mauritian manufacturer based in Kenya plans to list on the Nairobi Securities Exchange.

The group is planning to list 15 per cent of its shares on the NSE in order to give the group access to the capital markets and also unlock value for the shareholders.

“Going through the equity market would probably give us more profile and will give us a quicker way to expand the region,” Heril Bangera, Managing Director at Flame Tree Group told CNBC Africa.

The firm will list on the Growing Enterprise Market Segment later on in the year joining Home Afrika Limited, a housing company in Kenya.

The group which started 25 years ago is the largest manufacturer of plastic water tanks in East Africa and one of the largest in Africa with factories in Kenya, Ethiopia, Sudan, Rwanda and Mozambique.

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“If you look at the countries we are operating in, Kenya is predominantly the largest market. You always need to go to markets that are gowing to a certain growth and we already operate in countries that are growing fast,” Bangera said.

“We believe that concentrating on these countries and in the future, other [countries] will grow us as a company and at a faster pace.”

According to Bangera, the group’s expansion is largely driven by the growing middle income class that has created a large market for its goods.

The firm brands include Roto Tanks, ZOE brand of cosmetics and SIORA hair extensions among others.

In 2013, the firm’s revenue was at 2.2 billion Kenyan shillings. The Mauritian manufacturer is also looking forward to a potential rights issue within the next two years.

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