Expertly Overview of Nairobi securities Exchange Initial Public Offer. No of shares ~ 66 Million Price ~ 9.50 Per share. Minimum Size ~ 500 Shares. Amount to be raised ~ 627 Million Sale Period 24 July 2014~ 12 August 2014. The Nse recorded a 5 Year CAGR ( compound Annual growth rate) of 35.5 % by Increased Market turn over.In the Past five year Nse has moved from a loss after tax of 31.8 Million to a Profit after tax of Kes 262.2 Million.The growth In earnings in 2014 is likely to be Subdued due to the Fact that the company reported a One off gain of 120.0 M in 2013 from a recovery of Bad debt.In the longer term,i believe that Investments in IT infrastructure & systems will facilitate the creation of a new Products & Launch of the Derivatives Market will drive income Growth in a cost Effective Manner.The Nse will be the Second Exchange in Africa after Johannesburg Stock Exchange to be listed & therefore Provides A Unique Exposure to the Growth in Africa Frontier Markets.At the Foward P/E of Kes 6.7x ,P/B of 1.2x and Dividend Yield of 4.5 % compared to the JSE P/E of 15.3 ,P/B of 3.8x and Dividend Yield of 3.5x. Investment Risks~●The offer Price can be Affected by GDP,Equity& Market capitalization to GDP ratio,Equity & bond turnover ratio,level of interest rate & other factors. The Share Price of the Nse should be considered volatile due to the unpredictability of the Investor Behaviour towards the Annual Potential of the NSE ● Trading & Payment of dividends is done in Kshs & as a result those investors whose Principal currency is not the Kshs are Exposed to foreign currency rate risk.● Liquidity~ The actual level of free float may be lower than Projected which can affect Liquidity.As a result investors & share holders are cautioned that Nse shares may Experience Moderate illiquidity.Roba AdanWangunyu SteveWyclife BonnkeTsomnyazi Wa NgangaMuturi KimondoEsther WavinyaFaith MueniConsumersfederation Kenya
Posted on: Thu, 07 Aug 2014 12:42:54 +0000
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