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NSE

Tuskys supermarkets starts listing process on NSE

by Teddy Leting August 5, 2019

written by Teddy Leting

Regional retailer Tuskys Supermarkets has kicked off its listing process on the Nairobi Securities Exchange. The retailer has started hunting for transaction advisors as it eyes a September 2020 listing.

Tuskys Supermarkets has been incubated into the IBUKA program of the Nairobi Securities Exchange in a bid to accelerate its listing process.

The family owned Tusker Mattresses limited which operates with the brand Tuskys Supermarkets had hinted at listing on the Nairobi Securities Exchange in 2016 but management and ownership wrangles stalled the process.

The retailer that currently operates in Kenya and Uganda owns 63 stores in the two countries is now the region’s largest retail chain following the collapse of Nakumatt supermarkets in 2017.

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Tuskys Supermarkets Chief Dan Githua says the company is targeting to list on the bourse in 2020 in a bid to raise funds for regional expansion.

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On Thursday, the company was admitted in the NSE’s Ibuka programme that seeks to offer guidance on companies eyeing selling their shares to the public.

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Nairobi Securities Exchange says the retailer is joining the Accelerator Board of the program following a rigorous evaluation and vetting process.

Tuskys is the fifteenth company to join the program since its launch in December 2018.

The NSE Ibuka Program is aimed at growing the visibility, brand recognition and business opportunities for hosted companies.

August 5, 2019 0 comment

Trade

Kenya to launch derivatives markets in July

by Teddy Leting June 27, 2019

written by Teddy Leting

Kenya has finalized plans to launch the derivatives markets in July, officials said on Wednesday.

Rufus Kariuki, manager of derivatives in the Nairobi Securities Exchange (NSE), told journalists in Nairobi that the contracts to be traded will be based on the NSE 25 Index as well as seven blue chip stocks.

“We also have in place two banks that will act as clearing houses for settling trading accounts and confirming trades in real time,” Kariuki said.

Derivatives are financial instruments whose characteristics and value depend upon the characteristics and value of an underlying asset which is typically a commodity, bond, equity or currency.

In May, the Capital Markets Authority gave the NSE regulatory approval to launch the Derivatives markets.

Kariuki said that the derivatives will be settled at the end of each trading day to reduce risk of default by investors.

He noted that there is demand for the product in Kenya because it will enable investors to buy or sell derivatives to manage the risk associated with the underlying security, to protect against fluctuations in value, or to profit from market movements.

In order to operationalize the derivatives markets, the NSE has set aside 130 million shillings (1.27 million U.S. dollars) for the Settlement Guarantee Fund that will insure investors against counter-party default risk.

He added that derivatives markets will help to deepen the capital markets by allowing investors to make returns when the securities markets rise or fall.

He revealed that the trading fees for single stock futures will be 0.17 percent, while fees for index futures will be 0.14 percent on the value traded compared to the trading fees on shares which range between 1 and 2 percent.

|Xinhua

June 27, 2019 0 comment

Business Mobile

Airtel Africa to list over 500 million shares on Nigerian Stock Exchange

by Teddy Leting June 27, 2019

written by Teddy Leting

The telecommunications company Airtel Africa plans to list at least 500 million shares on the Nigeria Stock Exchange. The initial offer will comprise of between 14 per cent and 18.9 per cent of the firm’s shares at a price of between N363 (KSh102) and N454 (KSh128).

According to the company’s prospectus, the shares will start trading on the exchange on the 4th of July.

“It is expected that the Nigerian admission will become effective on July 4, 2019, and unconditional dealings in the ordinary shares will commence on the NSE on July 4, 2019,” read the report.

Airtel Africa revealed that the initial offer will be open to institutional investors and High Net worth Individuals only. The shares will be issued through a book building process.

The Telco is also preparing to list on the London Stock Exchange where it will sell at least 25 per cent of its shares. The firm aims to collect $750 million (KSh75.75 billion) from the London listing.

Airtel Africa is the number two mobile operator in Africa after the MTN group. The company has subsidiaries in 14 African nations including Kenya, Rwanda, Uganda, DR Congo, Zambia, Nigeria, and Seychelles.

Its CEO Raghunath Mandava told investors, “We have built Airtel Africa into the second-largest mobile operator in Africa and our clear strategy and efficient business model make us well positioned to capture the growth opportunities across our markets, in voice, data and mobile money.”

Funds raised from the two listings will be used to reduce the firm’s debt which as per Reuters, stood at $4 (KSh404) billion in March 2019.

June 27, 2019 0 comment

Trade

NSE begins shift to a new trading system

by Teddy Leting April 15, 2019

written by Teddy Leting

The Nairobi Securities Exchange (NSE) conducted trial trading sessions on its new trading system in partnership with the Central Depository System Corporation over the weekend.

The exchange is in the process of migrating from the ChellaSoft system to a new and more efficient trading system – the Millennium Information Technology (MIT) – following frequent failures by its current.

The new platform will allow stockbrokers to manage their accounts, change passwords, switch on users, and set trade limits. Under the new MIT system, securities traders will take part in five trading sessions; Pre-trading, Opening auction call, auction, regular trading and market close, unlike the current program which has four sessions.

This is expected to improve liquidity at the exchange through increased trades.

The MIT system can handle up to 36,000 deals daily, a significant improvement from the average 1,000 trades performed each day at the NSE.

CDSC is also upgrading its system to a modern platform that will enable intra-day settlements, online account creation, and capture information on beneficiaries.

April 15, 2019 0 comment