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Africanhair targets NSE listing to fund expansion
Kenya based Danish hair products firm Africanhair PLC, trading as BeautyClick plans to list on the Nairobi Securities Exchange to raise new equity for regional expansion. The company started the process of acquiring requisite regulatory approvals for a listing and further capitalization at the stock market. BeautyClick Founder and Director, Jesper Drescher joins CNBC Africa for more.
Tue, 18 May 2021 10:14:41 GMT
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AI Generated Summary
- The company aims to attract growth capital and provide Kenyan investors with an investment opportunity in the ICT sector through the NSE listing.
- Africanhair PLC is positioned to capitalize on the flourishing beauty market and growing e-commerce sector in Sub-Saharan Africa.
- The company's listing on the NSE will pave the way for the development of the SME segment in the tech industry and boost investor confidence in the tech ecosystem.
Kenya-based Danish hair products firm Africanhair PLC, trading as BeautyClick, is embarking on a journey to list on the Nairobi Securities Exchange (NSE) to raise new equity for regional expansion. The company, founded by Jesper Drescher in 2016, has made significant strides in transforming the beauty and fashion market across Sub-Saharan Africa by leveraging the power of e-commerce. As the leading player in the beauty space in East Africa, Africanhair PLC is now gearing up to scale its operations and democratize the ownership of the company through a potential IPO.
Drescher highlighted the two primary reasons for pursuing a listing on the NSE. Firstly, the company aims to attract growth capital to fuel its expansion plans. Secondly, it seeks to allow Kenyan investors to participate in the value creation and become co-owners of BeautyClick. By listing on the NSE, Africanhair PLC hopes to provide local investors with an investment opportunity in the ICT sector that is currently not readily available.
The company has already submitted preliminary applications to the capital market authorities in Kenya, signaling its intent to move forward with the listing process. While specific details regarding the size of the offering and the number of shares to be issued are not yet disclosed, Drescher emphasized the potential of the beauty and ICT sectors in Sub-Saharan Africa. With a flourishing beauty market valued at approximately 58 billion Kenyan shillings and a growing e-commerce sector, Africanhair PLC is well positioned to capitalize on the market opportunities.
If the listing is approved, Africanhair PLC will be the first e-commerce and tech company to be listed on the NSE, opening up a new investment avenue for investors looking to tap into the country's digital economy. The company's entry into the market is expected to boost investor confidence in the tech ecosystem and provide a much-needed funding platform for tech companies in Kenya and the region.
Drescher expressed confidence in the potential of the ICT sector to drive Kenya's economy, especially in the post-COVID era where digitalization has accelerated rapidly. He compared the company's growth trajectory to traditional tech businesses, emphasizing the focus on fine-tuning unit economics and customer acquisition before scaling up.
The move to list on the NSE not only marks a significant milestone for Africanhair PLC but also sets the stage for the growth and development of the SME segment in the tech industry. By paving the way for other tech companies to access funding and list on the regulated market, Africanhair PLC is playing a vital role in bolstering the tech ecosystem in Kenya and beyond.
As the company navigates the listing process and awaits regulatory approvals, stakeholders and investors are eagerly anticipating the next steps in Africanhair PLC's journey towards regional expansion and market democratization.
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