The Nairobi Securities Exchange (NSE) is set to raise Sh627 million in its sale of 66 million new shares at a price of Sh9.50 per share that was launched on Wednesday.
The minimum number of shares available for purchase is 500 and will cost Sh4,750. Thereafter, purchases are in multiples of 100 shares.
The offer which will run from July 24, 2014 and close on August 12, 2014 is open to domestic and international investors with interested parties having 14 working days to participate in the offer.
The business, which was until this year mainly owned by brokers who paid for a membership in the mutual company that ran the market, hopes the listing will enhance transparency and provide funds for new investments.
The Kenyan government owns a small stake.
Referring to new products in the IPO prospectus, NSE Chief Executive Officer Peter Mwangi said: “Individuals and companies can cushion themselves against interest rate fluctuations, exchange rate volatility, and commodity price changes while boosting liquidity in the underlying assets.”
Investors in the issue, which will be open from July 24-Aug. 12, will be offered about 31 percent of the NSE’s 212.5 million authorised shares.
The NSE has assets of 1.4 billion shillings and reported a pretax profit of 379 million shillings last year. It had more than 120 listed equities and bonds at the end of last year.
The market capitalisation for all shares and bonds listed on the market stood at about 2.7 trillion shillings ($30.75 billion) at the end of 2013.
AUTHOR:BEN GUMO