Jamii Bora targets a listing on GEMS board in one year
From left: Jamii Bora CEO Samuel Kimani, chief commercial officer Timothy Kabiru and chairman James Gacheru during the bank’s AGM in Nairobi on Thursday. SALATON NJAU
Micro-lender Jamii Bora Bank has announced plans to list on the small companies’ segment at the Nairobi Securities Exchange in the next one year.
In its annual general meeting held on Thursday, Jamii Bora Bank shareholders passed a resolution to allow for conversion of its shares certificates into electronic accounts, setting the stage for the listing. The bank also split its shares 100 times to increase their liquidity.
“Last year we had resolved to list over-the-counter (OTC), but with the creation of GEMS, whose requirements are more relaxed, we saw why not just list on the wider platform,” said Jamii Bora CEO Samuel Kimani.
Shares of firms that are listed on the OTC market are traded through select stockbrokers unlike under GEMS, which opens the stock for trading by all NSE intermediaries.
The listing is expected to raise liquidity of the lender’s shares by making them available to a larger group of investors.
The share split will see the par value of Jamii Bora Bank shares drop to Sh0.66 from Sh66, while its market price will be Sh2.20 from Sh220 per unit.
“We felt the market value of Sh220 was too expensive and also even with appreciation we will go for some time without considering doing it again,” said Mr Kimani.
Last year the bank held a rights issue to raise its core capital to above the Sh1 billion minimum requirement by the regulator, which was oversubscribed by 35 per cent. Shareholders applied for about Sh700 million against the Sh520 million that the bank had put on the block.
The small sized bank has been re-inventing itself with shareholders injecting additional capital in the past two years to drive growth.
In 2011 new investors, Messrs Asterik, bought a stake into the company and appointed former KCB deputy director, Samuel Kimani who is also a major shareholder in the outfit as the new managing director.
On Thursday it announced a 65.9 per cent growth in its first quarter profit after tax. The bank made a profit after tax of Sh15 million driven by increased interest income from a growing loan book. The bank has increased its branch network to 14 outlets with intention to continue opening a branch each month.
Major shareholders include Jamii Bora Scandinavian Group and Messrs Asterisk with a 25 per cent stake apiece, Jamii Bora Africa Group (12 per cent) and Nodic Micro with a five per cent stake. The trading of shares will allow for exit and entry of shareholders and price discovery.
