NSE to go public with shares sale

The country could be set for another big share sale to the public since Safaricom’s chaotic initial public offering in 2009, with Nairobi Securities Exchange listing its stake in June.

Speaking during the release of the NSE’s financial results for the first time at its head office in Exchange Building, Nairobi, chief executive Peter Mwangi said the securities exchange would list on the Main Investment Market Segment.

The exchange posted a net profit of Sh263 million in 2013, representing a 210 per cent rise, compared to Sh84.78 million the previous year.

“Our strong financial position in 2013 was a result of the very strong market performance and the efforts of management to diversify revenue streams from the traditional sources of transaction levy and annual listing,” he said.

SIGNIFICANT INCREASE

Overall, the NSE realised a 62 per cent increase in income  during 2013 to Sh622.7 million, compared to Sh384.3 million.

The bourse also registered a significant increase in capitalisation of 49.91 per cent to stand at Sh1.92 trillion. The NSE All Share Index moved up 33 per cent during the period.

Equity turn over rose by 79.45 per cent to Sh155.75 billion compared to Sh86.79 billion recorded in 2012. The proportion of equity transactions executed by foreign investors in the year averaged 51.38 per cent.

Aggregate growth

Mr Mwangi said the aggregate growth was, however, slowed down by 20.01 per cent decline in the fixed income market segment turnover from Sh565.67 billion in 2012 to Sh452.46 billion recorded in 2013.

To pave the way for the listing, the securities exchange intends to demutualise - separate the management from shareholding - by end of the month, having settled issues of owners and obtained approvals from the Capital Markets Authority.