Kenya: Nairobi Securities Exchange's IPO oversubscribed by 663.7%

Sep 08, 2014

The Nairobi Securities Exchange said its recent initial public offering (IPO) was successful, posting a 663.7 per cent oversubscription.

The Nairobi Securities Exchange said its recent initial public offering (IPO) was successful, posting a
663.7
per cent oversubscription.

Investors requested 504 million shares, although 66 million were initially offered at a price of 9.5 shillings
(€0.08)
per unit.

"With the capital raised through the IPO, the exchange will make investments to support the introduction of new products such as REITS, ETFs and derivatives," said chief executive Peter Mwangi, as quoted by CBNC Africa.

"With the support of our shareholders, we are confident that over the next four years, we will achieve our strategic objectives of 100 equity listings and four trillion Kenyan shillings equity market capitalisation," he added.

In August 2014, the NSE said its interim financial results for the January-
June 2014 period showed a gross profit of 158.2 million shillings.