Shoe and leather accessories vendor Nairobi Business Ventures (NBV) is expected to become the first listing in 15 months if it is admitted by the end of this month.
NBV, which operates a chain of shoe stores under the KShoe brand, will list under the Growth Enterprise Market Segment (GEMS) by way of introduction once it receives the final approvals from the Nairobi Securities Exchange’s (NSE) listing and approvals committee.
The firm is listing at a time the bourse is in a bearish mood, meaning its founders may have to settle for a lower listing price than they would have enjoyed had they come into the market a year ago.
Chief executive Vasu Abotula said listing is not meant to raise capital given the depressed nature of the market.
“We have completed our private placement and now have the minimum required 25 shareholders, and we have also added three directors to our board to reach the required five ahead of the listing,” he said.
“We are offloading 15 per cent of the firm’s equity. We had planned to sell a larger share but we have kept it at the minimum for now because at the moment we have not realised the right price in the market.”
NBV first made public intention to list early last year but the process took time as the NSE, Capital Markets Authority and the nominated advisers CBA Capital insisted on a more thorough scrutiny of the firm’s corporate governance, financial performance and expansion plans.
The firm which operates six outlets in Nairobi will become the fifth company to list on the GEMS segment after Home Afrika, Flame Tree Group, Kurwitu Ventures and Atlas African Industries Limited.
The GEMS listed firms have returned mixed performances since the segment was launched. Home Afrika and Atlas have seen their prices tumble to Sh1.90 and Sh1.50 — having listed at Sh12 and Sh11.50 respectively — as both hit financial headwinds.
