A real estate developer, Home Afrika, has received approval from the Capital Markets Authority (CMA) to list on the Nairobi Securities Exchange (NSE) by introduction.
The firm will list on the bourse’s newly created Growth Enterprise Market Segment (GEMS). The approval paves the way for Home Afrika to list some 405,255,320 ordinary shares on the bourse GEMS at an offer price to be officially unveiled.
The trading of Home Afrika’s stock will officially commence at the bourse on July 15, this year. With the approval, the developer becomes the first real estatecompany to be listed at the NSE and the first company to list on the GEMS. GEMS was introduced as an avenue for growing companies to access the securities exchange.
“The listing on GEMS provides a perfect window for the market to determine a fair valuation of shareholders’ investment and paves way for future cash call events to drive our ambitious expansion plan in the region and the rest of Africa,” said Lee Karuri, Home Afrika Chairman. “
It indeed offers our shareholders a market-driven price discovery mechanism based on the actual fundamentals of our business.”
Dan Awendo, a director of Home Afrika, said the listing would bolster confidence among shareholders through regular reporting, disclosure and compliance.
“The listing on GEMS marks our great journey in preparation to be a key player on the real estate Investment trusts, bonds and equities markets,” said Awendo.
The GEMS segment has less rigorous listing requirements compared to the Main Investment Market Segment (MIMS) and Alternative Investment Market Segment (AIMS). This makes it attractive for managed Small and Medium Enterprises to access the capital markets.
The GEMS require a minimum share capital of Sh10 million, in comparison to the Sh20 million requirement for the AIMS and the Sh50 million for MIMS boards.
Mega projects
Home Afrika Ltd is currently involved in three projects valued at over Sh10 billion and is focusing on undertaking about 10 projects as part of its five-year strategic plan. Its growth plan seeks to achieve its strategic objective of attaining a project turnover of $ 1.0 billion within the next five years.
NIC Capital is the Nominated Advisor for the listing while, PKF, Mboya Wangong’u & Waiyaki and Redhouse Public Relations are the reporting accountants, legal and communication advisors respectively. Cooperative Bank is the registrar.
