Nairobi Securities Exchange Launches IPO

(Last Updated On: July 25, 2014)

NSE

NSE (Nairobi Securities Exchange) is set to trade on the securities exchange within the coming month. The NSE IPO offer started on July 24th 2014 and the offer closure date is on Tuesday 12th August 2014. Each stock will be given at an offer price of KES 9.50 and you can buy a minimum of 500 shares in multiples of 100. The total shares on offer are 66,000,000 giving it a total value of KES 627,000,000. After this shares will be electronically credited to CDS accounts and refund processing will be done on Thursday 4th September 2014. The official self-listing and trading of fully paid NSE shares on the Exchange is on Tuesday 9th September 2014.

NSE has expansion plans in Somalia, South Sudan, Democratic Republic Of Congo and Burundi since they do not have bourses due to past chaos. The money from the IPO will be used to upgrade the IT platform and fund new products.

How does the Nairobi Securities Exchange make money? This is though earnings from commissions from share trading and bond transactions. So the more the trading the more the money they make. It also makes money though bond transactions, data vending and listing fees. Companies such as Bidco, Nakumatt, Family Bank, CBA, Tuskys etc are yet to list on the NSE despite them being huge companies in their respective segments.

NSE expects to raise sh627 million and use part of it to settle headquarters mortgage with KCB. A subscription rate of above 68.8 percent is regarded as successful listing.