K Shoe share hits Sh8 on first day of trading
Nairobi Business Ventures, a shoe and leather products retail chain has formally been listed on the Nairobi Securities Exchange (NSE). The company, which operates under the brand name K-Shoe, got off to the perfect start with its shares appreciating sixty percent on the first day.
After opening the day at Sh5, the share closed at Sh8. This gave shareholders instant value having listed 23.6 million shares, lifting its valuation to Sh210.4 million on the first day of trading.
The shoe-vendor listed on the Growth and Enterprise Market Segment, GEMS, by way of introduction.
NBV Chairman Vasu Abutulo expressed confidence the company would access additional capital to enter into footwear manufacturing.
“The basic plan actually is to expand and have our retail outlets, establish our brand then we work more towards manufacturing,” Mr Abutulo said.
This is the first listing in over a year, as NBV becomes the fifth company trading in the GEMS market joining the likes of Flame Tree, Kurwitu, Atlas and Home Afrika.
K Shoe, which began operations in the country in May 2012 has six outlets spread across Nairobi. The firm plans to expand its product portfolio to satisfy the market.
“This listing brings in a lot of scope for visibility. It is for people to observe our performance in the coming time,” he said.
Following the Listing, NBV’s majority shareholders and founder members have agreed to lock in their investment in the company for two years before being allowed to offload shares.
The NSE is encouraging small and medium sized enterprises to list on the bourse to raise capital. NSE Chief Executive Geoffery Odundo said he expected to have at least 19 firms trading on the GEMS counter by 2017.
“This is our fifth listing since we started and the first listing in the last 2 years, the last one we had was Atlas. NBV coming at this time is a very good opportunity for other investors to come into the market,” Mr Odundo said.
The GEMS platform was created to enable SMEs list on the NSE without the cumbersome requirements required in the other two segments.
By Denis Otieno & Beatrice Eghwa