Bourse IPO price set at Sh9.50 each
What you need to know:
- Part of the finance will go to redeeming its mortgage with Kenya Commercial Bank, the prospectus read. The exchange borrowed Sh300 million at 15 per cent to partly fund the purchase of its new headquarter at Westlands, Nairobi, last year.
- The bourse will also use the money to invest in infrastructure to support new products and capital for setting up of the futures exchange.
- The IPO will culminate in the self-listing of The Exchange on the main investment market segment on September 9, this year.
Kenyans seeking to own part of the Nairobi Securities Exchange will need to invest a minimum of Sh4,750.
NSE sale of shares to the public through an initial public offering opens today and closes on August 12, 2014.
Sixy-six million shares are up for sale at Sh9.50 each. The bourse hopes to raise Sh627 million from the sale. Each applicant must buy a minimum of 500 with an additional offer made in multiples of 100.
“This is an opportunity for investors to buy shares in The Exchange and participate in the growth we see coming in our markets. It will also allow us to raise the capital to make the investments to support our business” chairman Eddy Njoroge, said yesterday at the launch.
The IPO will culminate in the self-listing of The Exchange on the main investment market segment on September 9, this year.
The bourse will be the second exchange in Africa after the Johannesburg Stock Exchange to self-list.
Part of the finance will go to redeeming its mortgage with Kenya Commercial Bank, the prospectus read. The exchange borrowed Sh300 million at 15 per cent to partly fund the purchase of its new headquarter at Westlands, Nairobi, last year.
Invest in infrastructure
The bourse will also use the money to invest in infrastructure to support new products and capital for setting up of the futures exchange.
The NSE plans to introduce Real Estate Investment Trusts, Exchange Trade Funds and the commodities exchange.
The bourse expects to introduce Real Estate Investment Trusts this year to enable people to invest in real estate indirectly, either through properties or mortgages.
Exchange Trade Funds, which are similar to unit trusts or mutual funds but are listed and traded on the exchange, are also planned for introduction on the NSE. There are also plans to introduce the Derivatives Market this year to widen the investment options.
The new infrastructure will include the automated trading system upgrade and bonds trade reporting system.
