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Family firms ‘set sights’ on listing at the stock market

NSE chief executive Geoffrey Odundo (right) with derivatives market director Terry Adembesa on August 22, 2017. PHOTO | DIANA NGILA
NSE chief executive Geoffrey Odundo (right) with derivatives market director Terry Adembesa on August 22, 2017. PHOTO | DIANA NGILA 

Family-owned firms which had shelved listing at the bourse are now reconsidering the decision following the recent resurgence of equities, the Nairobi Securities Exchange (NSE) has said.

Chief executive Geoffrey Odundo said most of the prospective issuers have been looking for the right value to list on the NSE.

This would come as relief for NSE Ltd whose increased expenses and an 8.96 per cent drop in interest income to Sh47.13 million, due to rate cap regime, slashed its net earnings by 5.11 per cent to Sh77.77 million in the past six months.

The Capital Markets Authority (CMA) has underperformed its plan to list four new firms on the Growth Enterprise Market Segment at the NSE under its 10-year master plan from 2014.

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Some of the family-owned companies, Mr Odundo said, have been positive about the benefits that come with going public, including building brands, helping shape succession plans and enhancing corporate governance.

“As market is recovering, we have spoken to so many and most are willing to consider (listing). The message we have been taking to them is what listing do for them besides raising capital,” he said.

“We will also be re-engaging the government on firms which can be listed on the bourse. We think there is value that the market has to offer.”

The NSE raked in Sh196.8 million in equity transaction levy in the first six months of the year, an 11.37 per cent growth over Sh176.7 million last year on improved share prices.

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