NSE boss Geoffrey Odundo said the Ibuka incubation and acceleration programme will help build strong structures for promising companies, so that they list on the market when already stable.
On boarded companies, mostly small and medium-sized enterprises (SMEs) will take six to 18 months in the programme, in what NSE calls a radical surgery of business to make them investor-ready.
This is a departure from the past where NSE has been waiting for businesses to put their house in order then approach them for listing — a process that has proved slow and sometimes exposed new shareholders and creditors to losses.
The Nairobi Securities Exchange (NSE) says its new incubation programme for preparing companies wishing to list or raise funds on the bourse will help minimise company failures and spare investors losses.
Chief executive Geoffrey Odundo said the Ibuka (Swahili for emerging) incubation and acceleration programme will help build strong structures for promising companies, so that they list on the market when already stable.
“On completion of accelerator stage, companies will be ready for either initial public offer (IPO) or doing capital market financing. We believe this is much better than companies just listing instantly,” said Mr Odundo in Nairobi.
On boarded companies, mostly small and medium-sized enterprises (SMEs) will take six to 18 months in the programme, in what NSE calls a radical surgery of business to make them investor-ready.
This is a departure from the past where NSE has been waiting for businesses to put their house in order then approach them for listing — a process that has proved slow and sometimes exposed new shareholders and creditors to losses.
“We will use lessons of past company failures as case studies and help companies avoid failure through weak business models, structures or governance,” said Mr Odundo.
Companies on-boarded on ibuka programme will choose advisors to help them restructure the business and prepare them for capital financing.
This will involve scanning through and reshaping balance sheet, key ratios and governance structures.
On Thursday, the NSE welcomed on board APT Commodities, a Mombasa-based bulk tea exporter, as the first of as many as 20 companies that have expressed interest in the programme.
APT, which sells Jambo, Equator, Sinbad and Hassan tea brands, will join NSE accelerator board where it will be helped to enhance its corporate governance structures.
CEO Peter Gitata said APT wants to use the program to accelerate growth through better management structures and book keeping.
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