16 December 2011
Kenyan firms with a minimum asset-base of Sh10 million can now trade their shares and raise capital from the Nairobi Securities Exchange from June next year.
Formerly, only those firms with an asset-base Sh20 million to Sh100 million were eligible for listing.
Following the approval of a new regulatory framework giving birth to the Growth and Enterprise Market Segment, companies can raise the capital to accelerate their growth.
The new policy was developed by the Capital Markets Authority, Nairobi Securities Exchange and the Central Depository and Settlement Corporation.
Capital Markets chief executive Stella Kilonzo, said: “The market is intended to enable businesses broaden their shareholder base, and gain access to open market valuation.”
This is a departure from the present where the bourse is mainly made up of the Alternative and the Main Investment Market Segments whose regulations are seen as strict.
Duly vetted
The companies would not be required to submit their trading record or profit history but will have to appoint a vetted and approved nominated advisor responsible for overseeing compliance of the company with all their listing and continuing obligations.
They advisor will also be expected to ensure that at least one third of the company’s directors undergo a corporate governance director’s induction programme.
Ms Kilonzo said the creation of advisors is aimed at reducing the costs associated with building up business for listing. It encourages wider participation, she noted.
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