NSE to end IPO drought as Credit Bank eyes Sh1b through bourse

Wednesday, August 30th, 2023 06:00 | By
nairobi securities exchange (NSE)
Nairobi Securities Exchange (NSE). PHOTO/Courtesy

Credit Bank Plc has announced plan to raise Sh1 billion on the Nairobi Securities Exchange (NSE) in a move that would end listings drought at the bourse.

The market has been without an Initial Public Offering (IPO) since the listing of Stanlib Fahari Real Estate Investment Trust (REIT) in October 2015 and 2014 when the securities exchange itself made an initial public offering.

The exchange has since struggled to find listings as more companies have preferred to raise funds from elsewhere.  The move is expected to amplify the 37-year-old financial institution’s market presence and invite a broader spectrum of investors to partake in its operations.

Credit Bank Director Grace Nyachae said the strategic endeavour aspires to elevate the institution’s status from a tier 3 to a tier 2 bank, thereby solidifying long-term stability.

Investment avenue

 “From Sh1.4 billion shareholder equity in 2015, we’ve surged to Sh4 billion this year.

In the planned listing, our objective is to mobilise an additional Sh1 billion,” she stated. Nyachae said pivotal step of listing on the NSE will usher in a fresh investment avenue for the public and deepen the institution’s engagement with the community and collaborators.

She emphasised that this listing culmination is dual-purposed: To augment capital and to reward shareholders by optimising share value.

An impending employee share ownership programme is also on the offing and is intended to empower staff to be stakeholders in the bank’s prospective ascent.

Nyachae said the move is set to present a myriad of benefits to the bank and its shareholders, from heightened visibility and enhanced liquidity to access to a wider investor demographic.

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