Some 13 largely family-owned firms are seeking to sell shares to the public, the Nairobi Securities Exchange (NSE) said on Monday, offering hope of ending a prolonged listing drought.
The small- and medium-sized firms will be taken through a 10-month programme, which will see them access consultants and financial advisors to help them prepare for future listing.
The NSE on Monday launched an incubation and acceleration board for such firms, dubbed Ibuka –Swahili for emerging – saying another 10 companies have shown interest in joining the programme.
The incubation and acceleration board targets SMEs with the potential for high growth in the near to medium term. They will be taken through the process of enhancing their financial, technical, operational, commercial and strategic aspects of businesses.
That is meant to help them realise their valuation, boosting their chances of raising capital through debt and equity markets.
The NSE, together with other stakeholders including Capital Markets Authority, launched the business incubator and accelerator programme two years ago targeting SMEs which plan to sell some stake through exchange’s Growth and Enterprise Market Segment (GEMS).
“This programme will enable companies unlock their growth potential through a well-structured incubation programme that places a special focus on enhancing the select companies’ business structure, visibility and ability to attract investment among local and international investors,” NSE chief executive Geoffrey Odundo said in a statement.
Some of the firms which have publicly declared interest to list on the bourse include Kenya’s largest retail by market share Tuskys, investment manager Cytonn and Vehicle and Equipment Leasing Ltd.
“We are honoured and delighted to be part of a programme that will help us fast track our business and future outlook through expert consulting,” Tuskys CEO Dan Githua said.