K Shoe goes to the bourse with eyes on manufacturing
What you need to know:
The firm, which operates under the brand name KShoe, will be listed on the Growth and Enterprise Market Segment (Gems) of the Nairobi Securities Exchange (NSE) at a price of Sh5 a share.
The company will be looking for additional capital with a view to commencing manufacturing.
The firm opened its first retail store at the Village Market shopping mall in June 2012 and has since grown to six retail outlets in and around Nairobi. Recently it did a private placement raising Sh28 million from 26 shareholders.
Nairobi Business Ventures (NBV), a leather products retail chain, is set for listing on the bourse by introduction Tuesday with a view to raising additional capital to enter into footwear manufacturing.
The firm, which operates under the brand name KShoe, will be listed on the Growth and Enterprise Market Segment (Gems) of the Nairobi Securities Exchange (NSE) at a price of Sh5 a share.
On listing, the company will have an opening market capitalisation of Sh118 million given the 23.6 million issued shares and the price of Sh5 each.
“Application has been made to the NSE and approval has been granted for the listing of NBV Shares on the NSE. Subject to compliance with the NSE Listing Rules, the NSE will admit the shares of the company for listing under the security code ‘NBV’ in the Gems,” said the company in a notice disclosing the approval.
In granting approval the NSE takes into account compliance with the requirements of the Capital Markets Authority even as the exchange has powers to approve listing of companies under Gems.
Gems was created as a platform for SMEs to list without the onerous requirements in the rest of the NSE segments.
The company will be looking for additional capital with a view to commencing manufacturing.
“With the consideration that the company will require additional capital in order to achieve its objective of establishing a leather footwear and accessories manufacturing plant in Kenya, Nairobi Business Ventures has opted to list on the NSE by way of introduction,” said the company in the listing statement.
In the statement, NBV chairman Alfred Kathusi said the leather industry in Kenya has tended to export its raw materials and import finished products at a premium while neighbouring Ethiopia processes its own raw materials and sells the finished product to various European markets.
NBV, Mr Kithusi said, would now manufacture instead of just retailing finished products.
Monitor performance
“Nairobi Business Ventures will expand its presence first through retail expansions and invest in backward integration into manufacturing,” said Mr Kithusi.
The company expects that with the listing, investors should be able to monitor its performance and be in a position to participate in raising capital.
“This will enable investors to monitor the growth of the company and position themselves to actively participate in its capital raising initiatives going forward,” said the company.
“Listing on the NSE will also provide a broader base of shareholders and added liquidity for existing shareholders.”
The firm opened its first retail store at the Village Market shopping mall in June 2012 and has since grown to six retail outlets in and around Nairobi. Recently it did a private placement raising Sh28 million from 26 shareholders.