Homeboyz Entertainment on Monday listed 63.2 Million ordinary shares of a par value share KES 0.50 each on the Nairobi Securities Exchange following relevant regulatory approvals.
The entertainment company is targeting a listing price of KES 4.66 per share upon listing by introduction on the GEMS segment of the Nairobi. Securities Exchange.
According to the company’s prospectus seen by The Kenyan Wallstreet, the ordinary shares comprise of the total authorised share capital of KES 31,600,000.
The company says its primary goal of the listing is to offer the company and its shareholders the benefits of being listed as well as strategic positioning for capital raising, liquidity, price discovery, and brand visibility.
The Homeboyz listed entity disclosed that it makes money in the following segments; events management, soundtracks, DJ agency, barrier, stage and generator hire, bleachers, e-commerce products and public relations via a partnership with Publicis Group, a leading communications agency.
In the prospectus, the listing company disclosed that it does not own or have a shareholding in the Homeboyz Radio 2017 Limited, the company that owns the popular Nairobi urban radio station Homeboyz radio. The listing company’s directors, however, have direct combined ownership of 49% in Homeboyz Radio 2017 Limited, while 51% of the company is owned by Radio Africa Group which acquired the controlling stake in 2019.
Key Highlights From Homeboyz Listing Prospectus
In the year ended December 2019, the company generated a gross profit of Ksh 189.4 Million and a turnover of Ksh 311 Million. Most of the revenue is generated from the events management side of the business which has seen a significant slowdown by the pandemic. The company also disclosed that a significant portion of its business is conducted on a contractual basis.
As of 2019, the company made a profit of KES 36 Million and its assets were valued at Ksh 146.6 Million with liabilities of Ksh 32.6 Million. In 2020, the company expects up to 68% decline in revenue due to the adverse impact of the virus on the events industry. It also forecasts revenues of up to Ksh 246.187 Million by December 2023.
The family-owned company has its founder and Chief Executive Officer Mike Rabar owning a stake of 56.35% while Rose Rabar owns a 43.62% stake and rest is owned by John Rabar.
