NSE targets to list Ibuka graduate firm in early 2020Wednesday September 04 2019
The Nairobi Securities Exchange (NSE) is targeting to list at least one firm from its Ibuka incubation programme on the main market by end of the first quarter of 2020, offering hope that the listing drought at the market could be coming to an end.
NSE chief executive Geoffrey Odundo said major progress had been made in creating corporate structures for family-owned firms under Ibuka, giving them confidence to go public.
He spoke during the admission ceremony for RentCo East Africa, the 17th firm enlisted on Ibuka. The company leases out construction equipment, vehicles and aircraft to both public and the private sector.
“The 16 firms already under Ibuka are at different stages of compliance with our requirements. We are helping them meet the terms and you shall soon see major announcements made before the end of the first quarter of 2020,” said Mr Odundo.
He added that the market remains an attractive avenue for firms looking to raise capital, given that retail investors and institutional players such as pension schemes and insurance companies have in excess of Sh1.5 trillion to invest in viable companies.
The market has been without an Initial Public Offer since October 2015, when the Stanlib Fahari I-Reit hit the market, while there have only been five listings by introduction since 2014.
RentCo CEO Robert Nyasimi said their goal is to eventually go public to address succession issues as well as raise fresh capital for big ticket projects.
“Joining Ibuka programme is a major milestone that opens endless and positive possibilities for RentCo as its plans for succession and corporate growth,” he said.