Kings Pride Properties shares are set to trade in the US after it sealed a Sh45 billion financing deal with an American equity fund.
Kings Pride and its new equity partner Milost Global Incorporated said the fund’s injection would lead to an Initial Public Offering (IPO) in the US of the soon-to-be-formed entity on conclusion of the deal. Officials said the intended trading platform is the NASDAQ.
Milost is buying a stake in Kings Pride Properties through a debt and equity injection.
“The company’s shares will get to be traded on the US market, which would help create enormous liquidity and global exposure for the company and its management,” said the statement.
Kings Pride chief executive officer David Karau said the development was a result of a five-year global search in the US, UK, Canada, Switzerland, Norway, UAE, South Africa and Botswana for an equity partner aimed at raising funds to power growth beyond Kenya.
Milost Global Africa president Solly Asibey said the investment was informed by the fast-growing real estate industry in Kenya.
“The East African real estate market is ripe for investments and we are excited about the commitment that we have just signed with Kings Pride in order to cement our relationship,” he said.
The transaction undertaken by cross-border mergers and acquisitions specialist Palewater Advisory Group Inc. SA will see Milost fund the IPO to be conducted through a reporting blank check company thereby helping fast-track the process and have the company’s shares trading before the end of February.
The blank cheque company is a special purpose vehicle (SPV) where both Milost and Kings Pride will merge while attracting investors to inject funds into the venture.