The Nairobi Securities has approved K-Shoe maker-Nairobi Business Ventures(NBV) to list on the exchange by way of introduction on the Growth Enterprise Market Segment(GEMS) on 21st June 2016.
NBV is a retailer of leather footwear and accessories in Kenya and will list 23,600,000 Issued Ordinary Shares of KES 1.00 each at a listing price of KES 5.00 per Ordinary Share.
The “KShoe” maker seeks to expand its presence first through retail expansions and invest in backward integration into manufacturing.
The company in May conducted a private placement which was completed on 10th June 2016 and successfully raised the full targeted amount of Kes 28 million from 26 new shareholders. Additional 5,600,000 shares comprising of 23.7% equity stake in NBV were issued to new shareholders through a private placement bringing the issued share capital to a total of 23,600,000 shares.
“NBV will achieve its strategic objective of attaining a turnover of Kes 500 million within the next five (5) years. In order to achieve its long-term objective, NBV has opted to list on the GEMS board, which was launched by the NSE to target small and medium sized companies seeking to raise growth capital” Read part of the listing statement attached below.
The leather sector in Kenya is currently estimated at a value of Kes 27.0 billion, but industry stakeholders say the proposed Government intervention will result in a Kes 90 billion industry. The industry’s contribution to Kenya’s economy currently stood at Kes. 10.6 billion in 2013 with an estimated contribution of 4% to agricultural GDP. Industry earnings from local market dealers are estimated to be Kes 1.8 billion annually and approximately Kes 4 billion is derives from exports of semi-processed and unprocessed leather in Kenya. The industry also employs over 22,540 people through the 14 existing tanneries (a number expected to grow to 21 after completion of 8 mini leather processing units under construction in various regions of the country) and over 85 leather goods units/cottages in Kenya.
For More Please read the attached Listing Statement;Final Approved Listing Statement – NBV June 2016.pdf
UPCOMING TRAINING;
