IT firm founder eyes a first with stock market listing

What you need to know:

Empire’s core business is linking Internet service providers to their customers and has been sub-contracted by Wananchi Group, Safaricom and Jamii Telecoms.

Empire Microsystems founder and current chief executive James Mworia could become the youngest CEO of a NSE company, if his plans to list at the Nairobi bourse are successful.

Mr Mworia, 30, has announced plans to list the tech firm he started in 2006, after graduating top of his class at the Jomo Kenyatta University of Agriculture and Technology.

The firm plans to list on the Nairobi Securities Exchange (NSE) Growth Market and Enterprise Segment (GEMS). “By listing we’re seeking to strategically position ourselves to tap into the growing IT business, price discovery and position ourselves for future capital raising,” said Mr Mworia in an interview.

Another IT company founder, the East African Data Handlers MD George Njoroge, 33, has also announced plans to bring his company to the bourse in November.

READ: Techie eyes NSE listing for Sh100m company

Empire’s core business is linking Internet service providers to their customers and has been sub-contracted by Wananchi Group, Safaricom and Jamii Telecoms. The large firms usually lay the cables and contract Empire Microsystems to negotiate with landlords and when given consent, the company does the door-to-door connections, maintenance and support thereafter.

Mr Mworia says that the company has connected more than 5,000 buildings and 50,000 customers for the large service providers since 2008, when it ventured into the business. It has appointed Equity Investment Bank as the nominated advisor for the planned listing.

Njoroge Kibebe & Associates (NKA) are the reporting accounts for the transaction, OMK Advocates will handle the legal work while Lingua Communications is the marketing firm.

Prior to its current business of connecting homes, the company was mainly focused on software development. The firm has an annual turnover of Sh50 million.

Equity Bank’s chief operating officer Julius Kipng’etich chairs its board of directors.

Mr Mworia says the demand for Internet at homes has been rising, and the trend is expected to grow rapidly over the coming years.
The government’s plan to use IT to enhance security should also create a market for companies that can link their CCTV systems to the government one.

The listing is yet to get the NSE’s approval.