CMA opens window for firms to prop up the IPO share price

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Nairobi Securities Exchange (NSE) on the trading floor of the Exchange building. FILE PHOTO | NMG

The Capital markets Authority (CMA) has offered an opportunity for companies going public through an initial public offering (IPO) to support their share prices for up to 30 days after listing.

Companies going public via introduction or IPO – where they raise new capital by selling shares — have so far left their stocks to trade based on supply and demand on the Nairobi Securities Exchange (NSE).

This presents the risk of a sharp share price fall soon after listing, exposing companies to negative publicity and reduced investor confidence.

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