Kangwana property firm in fresh listing bid after 16-year wait

Anglo-African Property Holdings (AAPH), a real estate company associated with a Kanu-era business tycoon, plans to make a second stab at listing, 16 years after an initial public offering (IPO) bid flopped.

The company linked to Jared Kangwana has received Capital Markets Authority’s (CMA) approval to list on the Growth Enterprises Market Segment (Gems) and is awaiting Nairobi Securities Exchange (NSE) approval.

Mr Kangwana was the founder chairman of the first independent broadcaster, KTN.

“The CMA approved listing by introduction for Anglo-African Ltd during the quarter but was not listed at the NSE,” said the regulator in its quarterly report.

The CMA clarified that the company referred to in its report is Anglo-African Property Holding and not a Mauritian information technology firm, Anglo African.

Listing by introduction indicates the company will not be looking for new capital but the move is expected to lead to price discovery.

The realtor’s vision is to acquire and develop commercial properties in East Africa, a capital intensive process.

AAPH says it manages Nairobi properties such as The Mall in Westlands, Chester House in city centre and Impala Ecolodge in Kisumu. It owns a 0.8 acre plot of land in the prime Upper Hill, opposite Citibank.

The company has leases to development tourist facilities in two Kenya Wildlife Society (KWS) sites, whose details it has not disclosed.

AAPH share sale in 2000 is the only IPO to have flopped in the country after investors failed to subscribe to the issue.

“In 2000, the company’s aggregate net assets stood at Sh650 million run by 13 employees. Today the company’s aggregate net assets stand at Sh2.4 billion run by a staff of 179,” reads AAPH’s website profile.

Mr Kangwana’s family has a heavy presence in the board, with Biki Kangwana the chief executive and Tabitha Kangwana serving as a non-executive director.

Mr Kangwana, a former board member at the CMA, is the chairman.

Frank Ireri, chief executive of listed Housing Finance, serves in the board as a non-executive director.

Mr Kangwana recently teamed up with associates to form Maisha Microfinance Bank, which targets small traders.

AAPH is listing at a time the bourse is in a bearish mood meaning its founders may be pushed to settle for a lower listing price than they would have enjoyed had they come to the market a year ago.

READ: Moi-era businessman Kangwana opens microfinance bank

Firms listed under the GEMS segment have posted mixed performances since the segment was launched. Home Afrika and Atlas have seen their prices tumble to Sh1.20 and Sh1.05 - having listed at Sh12 and Sh11.50 respectively.

Kurwitu Ventures has barely traded since listing two years ago at a record high Sh1,500 a share.