The Nairobi Securities Exchange has announced plans to expand the Kenyan market with four publicly traded companies and as many corporate bonds in 2021.
Geoffrey Odundo the Chief Executive Officer of the NSE said the new equities listings will come from Ibuka, the bourse’s incubator program.
” From among the 26 companies on Ibuka, two will be listed on NSE’s Main Investment Market Segment and another two on the Growth Enterprise Market Segment.” said Geoffrey Odundo.
The NSE is looking to scale up activity, partly by increasing shares available for trade. The exchange is in talks with the National Treasury to sell additional stakes in listed state-owned companies, with a view to raising as much as kes300 billion.
In a statement issued by Geoffrey Odundo, he stated that the exchange will be more aggressive this year as they are focused on bringing small businesses on board . He further added that they have a “good proposition” for small business by enabling them to raise capital through bonds and equity sales so as to cushion them against the effects of the corona virus on the economy.
The exchange stated it intends to begin day-trading within the first quarter of this year, a plan that is expected to raise the turnover ratio to at least 15% from 7.9%. Day-trading will be complemented by securities lending and borrowing, which is expected to release more shares held by locals for trading.
“Currently about 75% of shares are held by domestic investors, while most of the trades are in the 25% in the hands of non-residents, if we can unlock another 25% from investors like pension schemes and push that total liquid float to 50%, won’t you see us doubling the turnover? ”
The exchange also stated they have engaged with the regulator and the Central Depository and Settlement Corp, and have come up with a model that will be able to make day-trading achievable