Seeking to raise 627 million Kenyan shillings and enhance transparency, the bourse got a nod, after a five year journey from the Capital Markets Authority (CMA) in June this year.
The CMA, a statutory agency charged with the responsibility of regulating and developing an efficient capital market in Kenya, approved the demutualisation of the NSE to a competitive joint-stock company whereby its shares will trade publicly.
“Our demutualization and self-listing is informed by the increased need for governance, risk management, market development and investor protection – all of which will enhance our market’s capacity to raise more capital,” Peter Mwangi Chief Executive at the NSE said.
The IPO will kick off from July 24 and runs up to August 12, 2014. During this time 66 million shares of the NSE are available for purchase by the public at a price of 9.50 Kenyan shillings per share.
“When we self-list, the NSE will join the Johannesburg Stock Exchange (JSE) as the second exchange in Africa to demutualize and list itself. This will pave the way for greater operational flexibility and ultimately the ability to be more competitive regionally and internationally,” said Mwangi.
Edward Njoroge, Chairman at the NSE noted that the bourse is seeking to finance the acquisition of new generation technology.
“That will provide the backbone for the listing and trading of these new products which, going forward, will not only have an incremental positive impact on the top line of the company but also contribute to the development of the overall economy,” said Njoroge.
The NSE which is currently owned by 22 shareholders who control 90 per cent and the treasury as well as the Investor Compensation Fund who jointly own 10 per cent is set to list the shares in an IPO. This will see founder members abridge their shareholding.
NSE is on course to be listed within this financial year as earlier planned. The bourse’s shares will be listed on the Exchange and commence trading from 9 September 2014. The self-listing of the NSE will be on the Main Investment Market Segment.
Standard Investment Bank Limited, Dyer and Blair Investment Bank Limited and Renaissance Capital Kenya Limited are the NSE IPO joint lead transaction advisors.