Dual Listing Seminar held in Nairobi

Nairobi April 17, 2015…

A dual listing in London and Nairobi is expected to allow a Kenyan company to raise both domestic and global equity capital to finance its growth through a single offer. A dual listing allows a Kenyan company to attract the world’s largest investors and gain international visibility without compromising its ability to tap domestic capital and develop a robust domestic shareholder base.

Mr Ibukun Adebayo, Co-Head Emerging Markets, Equity Primary Markets, London Stock Exchange Group (LSE) observed that listing in London gives African companies access to the world’s largest pool of international equity capital, the world’s leading institutional investors and unmatched visibility & prestige. He said; ”London Stock Exchange has long been a partner to Africa focused companies in their quest for growth. Since 2008, these companies have raised in excess of $12 billion in new and further equity capital across AIM and the Main Market. One hundred and twenty companies having major operations and assets in Africa are on London Stock Exchange markets, of which three operate in Kenya.”

Mr. Geoffrey Odundo, Chief Executive, Nairobi Securities Exchange (NSE) said; “The Nairobi Securities Exchange is keen to collaborate with the London Stock Exchange (LSE) and other Exchanges to enhance dual listings. Dual listing enables the NSE to ensure that companies with substantial operations in East and Central Africa are accessible to both East African and international investors. Mr. Odundo added; “It is in line with our commitment to develop our capital markets, creating long term value for all our stakeholders.”

Mr. Paul Muthaura, Acting Chief Executive, Capital Markets Authority (CMA), said; ”The Authority is pleased to be associated with this dual listing seminar which comes at a time when the implementation of the 10-year Capital Market Master Plan is gathering momentum with the recent gazettement of the National Steering Committee chaired by the Cabinet Secretary to the National Treasury, Mr Henry Rotich, and the commencement of the work of the industry driven Implementation Committee. Kenya is committed to transforming Nairobi into an International Financial Centre serving East and Central Africa and beyond. Free flow of capital within the region and the emergence of East Africa as an integrated investment destination are key foundations for Nairobi achieving its aspirations as an International Financial Centre. Dual listing creates an undoubted opportunity through which investors can seamlessly invest their funds across our borders, facilitate the diversification of portfolios, broaden the capital base available to issuers, and unlock the age old conundrum of liquidity. This dual listing seminar affords an opportunity for engagement between the UK, Kenyan, and wider EAC financial markets with a view to deepening domestic and regional markets; enhancing liquidity and identifying institutional and capacity building initiatives, which are key deliverables under the Master Plan, observed Mr. Muthaura”.

Mr. Charles Omanga, Managing Principal, Horizon Africa Capital, said they were proud to initiate this one of a kind dual listing forum together with the CMA, NSE, LSE and Stephenson Harwood. Mr Omanga said, ”as a preeminent advisory business in Eastern Africa, we hope that the high profile businesses and participants attending today have benefitted from the experience and detailed discussions”. Mr. Omanga expected that the initiative would profile the best of Kenyan businesses and at the same time offer Kenyan investors a real chance of investing in local businesses venturing into international capital markets.

“We believe that dual listings can play an important part in increasing foreign investment and domestic re-investment into the Kenyan and other African economies and are excited at Stephenson Harwood about unlocking this potential”, observed Mr. Tony Edwards, Partner, Africa Group, Stephenson Harwood.

ENDS

NOTES TO EDITORS

STEPHENSON HARWOOD LLP

Stephenson Harwood is a full service international law firm headquartered in London, with over 120 partners and 700 staff worldwide. It acts for a wide range of listed and private companies, institutions and individuals from its nine offices across Asia, Europe and the Middle East.

Stephenson Harwood has been active in Africa for many years. It regularly advises governments, banks, large corporations and family businesses in various sectors including natural resources, power, transportation, financial services and utilities, where the application of its market-leading expertise in finance, litigation and commercial transactions gives it a strong advantage. Stephenson Harwood has a strong working relationship with the Africa Legal Network (ALN).

Our capital markets team is recognized as one of the most active and successful in equity fundraisings and stock exchange transactions. We regularly advise companies as well as sponsors, nominated advisers and brokers, bringing together corporate finance and sector expertise from across the firm. Our team assists on admissions to the London Stock Exchange (including both premium and standard listings on the Main Market and the AIM Market amongst others and has a unique insight and knowledge of current market practice and expectations. We act for over 70 London listed companies and in the advisor rankings for London IPOs in 2014, Stephenson Harwood was ranked joint third in the legal advisor league table.
LONDON STOCK EXCHANGE GROUP

The London Stock Exchange is the pre-eminent global hub for African companies to attract equity capital from international investors. 120 off the over 600 international companies listed in London are African or Africa-focused and their combined market capitalisation is £265 billion.

The London Stock Exchange Group is a diversified international market infrastructure and capital markets business sitting at the heart of the world’s financial community. The Group can trace its history back to 1698. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe’s leading fixed income market; and Turquoise, a pan-European equities MTF.

It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group offers international business and investors’ unrivalled access to Europe’s capital markets.
NAIROBI SECURITIES EXCHANGE

The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE), an associate member of the Association of Futures Markets (AFM) and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiative (SSE). The NSE became a public listed company on September 9, 2014 and trades on the Nairobi Securities Exchange under the ISIN Code: KE3000009674.
CAPITAL MARKETS AUTHORITY

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest.
HORIZON AFRICA CAPITAL

Horizon Africa Capital is a boutique financial advisory firm based in Nairobi, and is a Nominated Advisor (NOMAD) registered by the Nairobi Securities Exchange. Horizon’s primary activities are Mergers & Acquisitions Advisory, Capital Raising and Transaction Services. The firm has expertise in a number of sectors including Manufacturing, Energy, Hospitality, Logistics, Agro-processing, Real Estate and Business Services. Horizon’s clients include private businesses, family investment offices, multi-nationals, private equity, insurance and pension funds.

For more information contact: Antony Mwangi, Head of Corporate Communications, Capital Markets Authority on Cell: 0722825227 and Email: amwangi@cma.or.keamwangi@cma.or.ke