Business Daily: KShoe brand, which is owned by Nairobi Business Ventures, is currently planning to list on the small cap segment at the Nairobi bourse by way of introduction. The shoe retailer is seeking regulatory approval to list on the Nairobi Securities Exchange’s (NSE) Growth Enterprise Market Segment (Gems) as a strategy to raise capital to open new outlets and venture into manufacturing of leather footwear and accessories.

NBV plans to set up a manufacturing plant in Kenya and a public listing allows it to tap a larger pool of investors to raise capital.

“Kenya is a rich source of raw material and skilled labour, which are required to harness the growing demands of the leather goods market worldwide,” said Vasu Abotula, the chairman of NBV.

“Processing hides and skins to finished leather and leather products generates a huge value addition.”

KShoe said details on pricing, number of shares and financial statement will be made public once the offer is sanctioned by the Capital Markets Authority (CMA).

KShoe previously traded as Kwanza Shoes after the company acquired Pakistani firm, Servis, which exited the market in 2012.

The retailer sells school shoes, canvas, Cheetah boots and slippers, putting it in a head-to-head battle for market share with family-owned global footwear firm Bata.

NBV, which currently operates four KShoe shops in Nairobi, will become the fifth company to list on the GEMS segment if it receives approval from the CMA.

Other mid-sized companies listed at the NSE are Atlas Development, Kurwitu Ventures, Flame Tree Group and Home Afrika.

KShoe plans to open 10 new stores this year and establish a leather processing plant in Kenya to produce high-end leather products.

KShoe CEO Raj Srungarapu said the company wants to capture the middle-class market which relies on imports for finished leather products.

“Kenya is still exporting raw materials and importing finished products at a premium unlike our neighbouring country Ethiopia, which is supplying finished leather products to European and Asian markets,” said Mr Srungarapu.