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Cytonn seeks shareholders nod to list on bourse’s SME segment

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Only one company has joined the stock market in the last 23 months. FILE PHOTO | NMG

Investment firm Cytonn has asked shareholders to approve its plan to list on the Nairobi bourse’s Growth and Enterprise Market Segment (GEMS) during its annual general meeting to be held on May 18 in Nairobi.

Cytonn, which says its real estate investment arm has over Sh82 billion worth of projects, had last September sought professional services to pave the way for listing at the counter.

Listing leads to creation of additional financing sources, enhanced visibility and credibility of the business and provides the resources a business needs to grow.

“Shareholders at the AGM shall be asked) to consider that the proposed listing by introduction of the company’s shares on the Growth and Enterprise Market Segment of the Nairobi Securities Exchange, be approved,” said Cytonn in the notice in local dailies on Friday.

“Shareholders shall also be asked to consider that the board of directors and all officers of the country be authorised to take all actions necessary to effect the listing including the preparation, execution and filing all the necessary applications, documents, forms and agreements with the Nairobi Securities Exchange,” Cytonn added.

The firm’s listing at the Gems counter would end a depressing trend that has seen only one firm join the stock market in the last 23 months.

READ: How Cytonn went public without taking IPO path

Companies can list on the GEMS with as little as Sh10 million share capital, turnover of up to Sh500,000 and less than 10 employees or turnover between Sh500,000 to Sh10 million and between 10 to 50 employees.

Launched in January 2013, the GEMS has struggled to attract issuers with only five companies – real estate developer Home Africa, manufacturing firm Flame Tree Group Holdings, investment company Kurwitu Ventures, footwear firm Nairobi Business Ventures  and troubled Atlas African Industries  — featuring as the lonely actors at the counter.

READ: No offers in two years as NSE suffers IPOs drought

GEMS has come under scrutiny due to various woes affecting firms listed on the segment.

Atlas Industries is currently suspended from trading at the NSE after falling on hard times that have seen it end up virtually without any assets to its name.

The GEMs segment was meant to be taking on at least five listings per year, and was touted as a way of bringing in family-owned businesses into public listing.