On its first day of cross-listing on the Nairobi Securities Exchange, Atlas Development & Support Services (Atlas), raised Ksh450 million through a private placement. The London Securities Exchange logistics and support services company was listed on NSE’s Growth Enterprise Market Segment.
The listing gives the Nairobi-headquartered company a Kenyan face after it first went to the London stock exchange to raise funds for its growth. Burbidge Capital was the placing agent and Nominated Advisor to the placing and cross listing.
Atlas CEO Carl Esprey said the strong uptake of 39,139,827 new ordinary shares at Ksh11.50 apiece by Kenyan investors was a show of confidence in the company’s growth strategy.
“The strong interest from Kenyan investors is recognition of the opportunity to create a world class development and support services provider in Eastern Africa. We have demonstrated robust financial performance, world class service delivery and regional scale to position Atlas as the best way to gain exposure to this opportunity,” he said.
He added that the funds raised would be used to provide additional capital for organic growth and acquisitions around Atlas’s support services offering in Kenya and the region. The company provides international development and support service solutions to multiple sectors, including oil & gas, mining, geothermal, construction and infrastructure.
The company employs over 700 Kenyans in delivering engineering, infrastructural development projects and workforce accommodation solutions in Kenya, Tanzania, Djibouti, Mozambique and Ethiopia.
NSE Acting CEO Andrew Wachira said the cross-listing of Atlas was another major step towards the bourse’s goal of ensuring that companies that have substantial operations in Africa are accessible to both Kenyan and international investors.
“This cross listing is historic for our exchange and it is directly in line with Vision 2030, which envisions that the growth in Kenya’s natural resources industries will also help grow our financial institutions,” he said. “The cross listing further justifies Kenya’s stance that its financial market remains very attractive to both local and international investors.
Atlas recently commenced construction on a Ksh180 million logistics hub in Lokichar, Turkana County. This is expected to help companies and government operate more effectively across the Turkana basin. Atlas plans to inject over Ksh4.5 billion in Kenya over the next five years.
Leave a comment