Kenyan bourse says to sell 31 pct of its shares in IPO

NAIROBI, July 2 Wed Jul 2, 2014 3:50am EDT

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NAIROBI, July 2 (Reuters) - The Nairobi Securities Exchange said it will sell 31 percent of its own shareholding in the bourse after receiving regulatory approval, aiming to complete the sale during the second half of this year.

"The NSE will now proceed with its IPO and offer to members of the public up to 31 percent of the authorised, ordinary share capital of the NSE," bourse Chairman Eddy Njoroge said in a statement issued late on Tuesday.

"Upon listing, NSE will be the second African Exchange after the Johannesburg Stock Exchange to be demutualised and to have made the successful transition from a private, mutual company to a public, listed company."

The exchange said it received approval for the listing in late June from regulator Capital Markets Authority.

Demutualisation is seen as a way of reining in stockbrokers' influence on the bourse's management, which has been blamed for slow action when brokers flout regulations.

Njoroge said that after the listing - which has been planned since 2005 - the shares will trade like any other company on the bourse.

In an interview in May, NSE's chief executive said part of the funds raised in the offer would be used to develop new products like derivatives, exchange-traded funds and Sharia -compliant indexes.

NSE's pretax profit more than doubled to 379 million shillings last year from 2012, while the market capitalisation of the companies listed on it rose 50 percent to 1.9 trillion shillings ($21.65 billion) during the same period.

At the close of trade on Tuesday, the capitalisation stood at 2.13 trillion shillings, while the main share index closed up 40.82 points, or 0.84 percent from the previous day, at 4,925.86 points.

In addition to stocks, the bourse also trades government and corporate bonds. (Editing by Drazen Jorgic and Susan Fenton)

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