Eight companies in NSE’s listing pipeline this year

At least eight firms are expected to list on the Nairobi Securities Exchange (NSE) this year, chief executive of the bourse, Peter Mwangi, has said.

Five companies are planning to list on the main market segment while one firm from a neighbouring country is expected to cross list in Nairobi.

Two others are expected to list on the Growth and Enterprise Market Segment (GEMS), which is expected to be operational by the middle of the year.

“We are hopeful that we can get about five listings on the main market. This year we are also going to operationalise the GEMS market and depending on what time that starts, we expect to see a couple of listings on this segment,” said Mr Mwangi in an interview.

CIC Insurance, book publishers Longhorn and clothing and lifestyle goods retailer Deacons have announced plans to list at the NSE.
Two companies have also indicated they will set up Real Estate Investment Trusts (REITs) that will trade at the exchange once the segment is operationalised later in the year.

Kenya’s ninth largest insurer by market share, CIC Insurance, announced on Monday that it had picked Faida Investment Bank, Kingdom Securities, Oraro & Company Advocates, Deloitte & Touche, Gina Din Corporate Communications and Nurturn to steer its listing by introduction.

Longhorn Publishers has also indicated that it may be selling its shares through an IPO by mid this year. The REITs market segment is expected to provide an opportunity for real estate funds to pool projects and sell the shares to investors through the NSE.

“There are some companies and their advisers who have been involved in the process. I am aware of two which have made indications to bring REITs into the market,” said Mr Mwangi.

One other company is also expected to cross-list its shares in the region’s largest stock market.

Currently, East African Breweries, Jubilee, Kenya Airways, Nation Media Group, Centum, Equity and KCB Group are cross listed at the region’s exchanges. “There is likelihood that there will be at least one.

There is one such transaction in the pipeline,” said Mr Mwangi, declining to disclose the firm as the cross-listing is yet to get approval from shareholders and regulators.
dmugwe@ke.nationmedia.com