Kenya Markets Regulator Signs Up 70 companies for Listing Incubator

In its drive to increase listings on the Nairobi Securities Exchange (NSE), Kenya’s Capital Markets Authority (CMA) says it has signed up 70 potential issuers for the Business Incubator and Accelerator on the Listing Experience event scheduled for 30-31 March 2017.

CMA Chief Executive, Mr. Paul Muthaura, during a media briefing on Friday said that the initiative is aligned to the Capital Markets Master Plan target to increase listings on the Growth Enterprise Market Segment (GEMS) of NSE by 3-4 companies annually. This translates to approximately 40 companies by 2023, creating a solid supply of future Main Board listed companies.

“The response from potential issuers is a clear demonstration of the level of interest in the capital markets as a source of long term funding to support growth and business expansion plans for companies in Kenya and beyond’’ said Mr. Muthaura said.

“The incubator and accelerator experience is intended to give interested companies a realistic and practical feel of the listing process. Interested firms will have an opportunity to participate in a stage by stage, one on one, structured engagement with the CMA, NSE, Nominated Advisors (NOMADS), Transaction advisors, Lawyers, Auditors, Stockbrokers and Investment Banks, among other service providers, to allow for confidential B2B discussions on their readiness for listing’’.

Mr. Muthaura explained that the areas of engagement on the listing process will include: identifying business needs/strategy issues, developing business plans, considerations for the appointment advisors & other agents, mandating negotiation, required documentation, regulatory and other approvals, the process of issue placement and allotment, and fees and timelines.

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The CMA Chief Executive reiterated that the Authority will also work with business incubators to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services to engage with firms that are not ready to list but have promising prospects that could be nurtured through incubation. This is geared to develop a pipeline of successful businesses to be listed in the future.