Homeboyz Springs Back With a Strategic Investor

After one year hiatus from the Nairobi Securities Exchange (NSE), Homeboyz Entertainment PLC staged a successful fightback last Monday. Homeboyz shares opened at Ksh4.66 on its debut and closed two trading sessions after moving Ksh44.2 million with the same listing price.

The Homeboyz unit began its admission into the capital markets in 2019 under the Ibuka program, then Growth Enterprise Market Segment (GEMS), and finally made it to the main market at NSE at a valuation of Ksh294.5 million.

This entertainment, media, marketing, and events managing company was to trade on the stock exchange from December 21, 2020. However, the financial disruptions that resulted in the outright downturn, owing to Covid-19, led to its exclusion from trading its shares at the Nairobi bourse, forcing it back to the drawing board. It resorted to distress measures to raise capital – looking for an investor.

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“Due to challenging macroeconomic conditions resulting from the Covid-19 pandemic, Homeboyz Entertainment received exemptions from trading for one year. These exemptions allowed the company to focus on engaging with strategic investors. In late 2022, the company commenced discussions with a strategic investor interested in acquiring a 30 percent stake in the business,” a statement from NSE reads.

Despite that, Homeboyz CEO Myke Rabar is hopeful after the sizzling debut that appeared to go off without a hitch in a chilled market for new listings.

“The successful commencement of trading at the NSE is a testament to our dedication, hard work, and the trust placed in us by our investors. We are committed to further expanding our operations, fostering innovation, and solidifying our position as the leading entertainment company in Kenya. We look forward to creating value for our shareholders and capitalizing on the opportunities that lie ahead,” he said.

Homeboyz started as a deejaying outfit in 1992, was incorporated as a private company on March 15, 2001, and to a public limited company in September 2020. In its listing statement indicating its shareholding, directors Myke Rabar holds 56.35% or an equivalent of 35.612 million shares, Rose Nyaguthii Maina has 27.568 million shares, and 20,000 shares or 0.03% stake under John Juma Obonyo Rabar.

According to the company, there is a high return predictability as it forecasts a surge in its revenue to $427 million in 2023 from advertising revenues alone due to the vibrant radio and TV scene and impressive internet coverage countrywide.

Homeboyz Entertainment PLC is also banking on major partnerships with global brands and companies like UN-Habitat, WRC Safari Rally, and Magical Kenya Open, among others. Previously, it has worked with Time Warner (Warner Bros subsidiary), UK’s Tiger Aspect Productions for the animation series Tinga Tinga Tales which aired on BBC’s CBeebies, and French multinational public relations company Publicis Groupe.

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