Kenyan stock exchange to sell shares

A stockbroker transacts shares during a trading session at the Nairobi Securities Exchange in Kenya's capital Nairobi.

A stockbroker transacts shares during a trading session at the Nairobi Securities Exchange in Kenya's capital Nairobi.

Published Jul 9, 2014

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Nairobi - Kenya’s stock exchange will become the second publicly traded African bourse with a share sale that was planned at least five years ago.

Nairobi Securities Exchange will hold an initial public offering from July 24 to August 12 and list stock on the market, it said today in an e-mailed statement.

The FTSE NSE Kenya 25 Index has climbed 15 percent this year, compared with a 17 percent gain in the MSCI FM Frontier Markets index.

“We are putting our money where our mouth is,” Head of Market and Product Development Donald Ouma said by phone today.

“We are saying capital markets are the best place to raise long-term capital.”

Kenya’s stock exchange first announced plans for selling shares in 2009.

The market has been seeking ways to deepen trading and attract listings from companies in East Africa’s largest economy.

The 62-member all-share index has a value of 2.14 trillion shillings ($24 billion), according to data compiled by Bloomberg.

“We are also looking into new products and services such as derivatives and real-estate investment trusts, and we are better suited to do so as a listed entity,” Ouma said.

JSE, the operator of the Johannesburg Stock Exchange and Africa’s first listed exchange, gained 11 percent this year, compared with a 12 percent increase in the FTSE/JSE Africa All Share Index. - Bloomberg News

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