Shri Krishna Overseas Limited (SKL) is set to get listed on the Nairobi Securities Exchange (NSE) after the firm received approval from the Capital Markets Authority (CMA) on Monday.
The Nairobi headquartered company joins the bourse via a non-capital route – listing by introduction. SKL’s listing at the Kenyan bourse brings to an end a 5-year streak of zero listings at the NSE since the joining of Homeboyz Entertainment in December 2020. SKL will be listed on the small and Medium Enterprise (SME) segment.
SKL will list 50.5 million shares at an offer price of 5.90 shillings, bringing its market capitalization at listing to 298 million. Its offer price surpasses three companies’ offer prices at listing out of the 13 already listed companies. The companies; Homeboyz Entertainment Plc which had an offer price of 4.66, Nairobi Business Ventures 5.00 and CIC Insurance group at 3.50. Skol’s listing will bring the tally of companies listed by introduction since 2006 to 14 as shown below.
Newly listed companies such as SKL prefer listing by introduction to IPOs due to factors such as high costs of IPOs, slow processes due to rigorous regulatory review among other factors. The last company to get listed through an IPO was Stanlib Fahari I-REIT in 2015 which was underwhelmingly subscribed at a subscription level of 28.96%. Companies’ fear of undersubscription makes them worry about market sentiment.
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