The listing of Deacons marks a rare instance of a family-owned business going public in Kenya, where many such firms prefer to remain private entities as founders fear loss of control of their business.
It is also the first non-Gems listing on the exchange since September 2014 when the NSE self-listed through an IPO.
Fashion retailer Deacons’ shares started trading on the Nairobi Securities Exchange (NSE) on Tuesday at an unchanged Sh15 price following the company’s listing by introduction.
The firm listed 123,558,228 shares at a price of Sh15 a share, which was unchanged after initial trades amounting to 418,000 shares. The price values the company at Sh1.85 billion.
The listing of Deacons marks a rare instance of a family-owned business going public in Kenya, where many such firms prefer to remain private entities as founders fear loss of control of their business.
“This is the right time for the shareholders to list, as they will be able to also transact in the shares more easily. While the OTC market where Deacons has been since 2010 has its positives, the trading processes are restrictive, such as processing the stamp duties, sending documents to auditors to confirm the value of the shares,” said Deacons chairman Peter Njoka.
“We want to see this sort of transition in family businesses in Kenya, where people now take a view that they do not have to keep pushing their children into taking over the business, since in some cases they may not be interested in it at all,” he said.
Deacons is the second company to list on the exchange this year after shoe retailer Nairobi Business Ventures (K-Shoe), which listed on the growth and enterprise market segment (Gems) in June at a price of Sh5 a share.
The fashion retailer is also the first non-Gems listing on the exchange since September 2014 when the NSE self-listed through an IPO.
