NAIROBI, Kenya
Home Afrika, one of the leading real estate developers, is the first company to receive approval from Nairobi Securities Exchange (NSE) to list by introduction on the bourse’s newly created Growth Enterprise Market Segment (GEMS). The approval by NSE paves the way for Home Afrika to list some 405,255,320 ordinary shares on the NSE’s Growth Enterprise Market Segment at an offer price to be officially unveiled.
Following the approval, trading of Home Afrika’s stock will officially commence at the bourse on July 15 this year during the symbolic bell ringing ceremony. With the approval, the developer becomes the first real estate company to be listed at the NSE and the first company to list on the GEMS which was introduced as an avenue for growing companies to access the securities exchange.
“The listing on GEMS provides a perfect window for the market to determine a fair valuation of shareholders’ investment and paves way for future cash call events to drive our ambitious expansion plan in the region and the rest of Africa. It indeed offers our shareholders a market-driven price discovery mechanism based on the actual fundamentals of our business,” said Lee Karuri, Home Afrika Chairman.
Dan Awendo, a director of Home Afrika, said the listing would bolster confidence among shareholders through regular reporting, disclosure and compliance, a key prerequisite for future successful cash call activities. “The listing on GEMS marks our great journey in preparation to be a key player on the Real Estate Investment Trusts, Bonds and Equities markets,” said Mr. Awendo.
The GEMS segment has less rigorous listing requirements than NSE’s other segments; Main Investment Market Segment (MIMS) and Alternative Investment Market Segment (AIMS) making it attractive for well-run and managed Small and Medium Enterprises to access the capital markets.
The GEMS counter is favourable to list on, with a minimum share capital of Ksh 10 million, in comparison to the Ksh20 million requirement for the AIMS and the Ksh50 million for MIMS boards. Besides building confidence in well-run medium and small-size enterprises as engines of economic growth, the listing will provide a way for other potential investors to buy into Home Afrika’s success story as well as participate in its growth plans.
Home Afrika Limited is currently involved in three projects valued at over KSh10 billion and is focusing on undertaking about 10 projects as part of its five-year strategic plan. Its growth plan seeks to achieve its strategic objective of attaining a project turnover of US$ 1.0 billion within the next five years.
NIC Capital is the Nominated Advisor for the listing while, PKF, Mboya Wangong’u & Waiyaki and Redhouse Public Relations are the Reporting Accountants, Legal and Communication Advisors respectively. Cooperative Bank is the Registrar. Home Afrika started as an investment club in 2008 and is behind the multi-billion shilling Migaa, a live-in-golf community in Kiambu County.
The firm is developing Lakeview Heights in Kisumu County, Llango in Kwale County and Kikwetu in Machakos County. The demand for affordable housing is significantly increasing worldwide with 5 million new units required per year according to UN Habitat.
In Kenya, the housing demand continues to increase particularly in the urban areas. According to the Ministry of Finance, current demand is estimated at 200,000 units per annum with supply estimated at 35,000 units in urban areas in the country. With such a massive supply gap, the private sector is expected to play a critical role in meeting the shortfall.
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