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Economy

Regional vehicle leasing company set for IPO

Vaell vehicles
A handing over ceremony of Vaell vehicles. FILE PHOTO | NMG 

Vehicle and Equipment Leasing Limited (Vaell), a regional asset leasing firm, is set to go public in the next two months, opening its ownership to Kenyan citizens.

In statement, VAELL’s Chairman Joseph Kizza said the firm has hired a consultant to guide the initial public offering (IPO) which is targeting to raise Sh1 billion, “and give the firm greater managerial autonomy to advance its growth strategy.”

“The amount of securities to be offered will be determined by market conditions and other factors at the time of the offering. The lessor will communicate the percentage of shares to be floated by end of January 2019 after the board’s approval,” it said.

The firm, which launched operations in 2006 mainly leases vehicles to the government and corporate bodies. It realised a turnover of Sh1.418 billion and a 20 per cent rise profits last year.

Vaell said the 3.5 per cent drop in revenue was mainly caused by 2017’s harsh business environment which it blamed on the prolonged electioneering period. The company has operations in Kenya, Uganda, Tanzania, Rwanda and Zambia and is also offering its services in 20 other countries in Africa through off-shore structures.

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Locally, Vaell also owns Kenya’s equipment sharing platform, Quipbank, which was contracted to build dams in Narok County and tractor sharing platform, TingA that was contracted by EABL to serve sorghum growers in Nyanza.

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