Shoe vendor Kshoes to list on the GEMS market

    Shoe vendor Kshoes to list on the GEMS market

    The Nairobi Securities Exchange is set to have a new trading counter, with shoe vendor Nairobi Business Ventures (NBV) set to list on June 21.

    NBV, which operates six shoes stores under the banner of KShoes, will be listing by introduction on the Growth Enterprise Market Segment (GEMS) of the NSE after receiving approvals from the bourse.

    This will be the first listing in over a year and becomes the fifth company trading in the GEMS market joining the likes of Flame Tree, Kurwitu, Atlas and Home Afrika.

    The shoe and leather accessories vendor will be listing 23.6 million shares with a share price of Sh5, giving the company a valuation of Sh118 million shillings.

    NBV was established by founder and Chief Executive Officer Vasu Abotula in 2012 starting out as a wholesale importer and distributor of shoes. The business has since evolved, opening its first retail outlet in June 2012 at the Village Market.

    The company has since expanded with six stores in and around Nairobi NBV has since grown to having six outlets in and around Nairobi.

    NBV raised Sh28 million from 26 new shareholders through a private placement completed on June 10.

    Following the Listing, NBV’s current major shareholders will hold a total of 76.3 percent equity stake while the remaining 23.7 percent will be held by the public.  Majority shareholders and founder members have agreed to lock in their investment in the company for two years before being allowed to offload shares.

    Mr Abotula is the majority shareholder of the company with a 34.7 percent stake while Managing Director Rajasekhar Srungarapu has a similar stake in the shoe vendor.

    The retail shoe market is dominated by second hand imports from markets such as China but has recently been tilting in favour of formal retail. Conservative estimates put the retail shoe market controlling 60 percent of the new shoes in the country, with more shoe retailers setting shop.

    “NBV’s target is the market currently served by smaller retailers, which is estimated at about 10 million pairs of shoes per year and is growing,” Mr Abotula said in the listing document.

    NBV also retails leather goods and accessories such as belts, wallets, purses, passport holders, business card holders and iPad cases which have seen growing demand in the market.

    The company made Sh75 million in revenues in 2015 selling over 6,000 pairs of shoes annually.

    According to the CEO, the company plans to tap further into the segment by providing tailor made leather accessories to local companies for use as corporate gifts and souvenirs.

    The shoe vendor is already thinking regional, sourcing leather garments and footwear from Ethiopia which has a vibrant leather market.

    NBV plans to open at least 12 stores in the next five years.