Flame Tree’s private placement oversubscribed

by Elayne Wangalwa 0

The Mauritian manufacture of water tanks and cosmetics in Kenya raised 194,300,000 Kenyan shillings by issuing 24,287,500 new shares at 8 Kenya shillings each during a one month long equity private placement.

“Our placement was oversubscribed, we are very happy to announce that, we are also very happy to announce that we will be listing on 6 November. We have all the approvals in place and that is a great milestone for us as the Flame Tree Group,” Heril Bangera, CEO and founder of Flame Tree Group told CNBC Africa.

(READ MORE: Flame Tree Group set to list 15% stake on NSE)

The firm will list on the Growing Enterprise Market Segment of the Nairobi Securities Exchange joining Home Afrika Limited, a housing company in Kenya.

In July, the group announced its intentions 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.

“The listing on the NSE will provide the basis for further expansion and give our fantastic Kenyan customers the chance to invest in great local brands that are making a difference in their lives,” Bangera said.

The manufacturing firm will use the funds from the oversubscribed equity private placement to finance several important capital projects, purchase of raw materials and meet working capital requirements.

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

The firm brands include Roto tanks, Zoe brand of cosmetics, 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.