| NAIROBI, July 23
NAIROBI, July 23 Kenya's securities market
priced shares in its initial public offering at 9.50 shillings
($0.11) on Wednesday, saying it planned a new derivatives
market, as it opened up to non-brokers for the first time in 60
The Nairobi Securities Exchange (NSE) is used as an entry
point into east Africa by foreign investors seeking exposure to
fast-growing economies in the region. Several Kenyan firms are
cross-listed on neighbouring bourses.
The business, which was until this year mainly owned by
brokers who paid for a membership in the mutual company that ran
the market, hopes the listing will enhance transparency and
provide funds for new investments.
The Kenyan government owns a small stake.
It plans to invest the 627 million shillings raised, if the
offer is fully subscribed, in rolling out new products including
a derivatives market, offering futures and options.
Referring to new products in the IPO prospectus, NSE Chief
Executive Officer Peter Mwangi said: "Individuals and companies
can cushion themselves against interest rate fluctuations,
exchange rate volatility, and commodity price changes while
boosting liquidity in the underlying assets."
Investors in the issue, which will be open from July 24-Aug.
12, will be offered about 31 percent of the NSE's 212.5 million
The NSE has assets of 1.4 billion shillings and reported a
pretax profit of 379 million shillings last year. It had more
than 120 listed equities and bonds at the end of last year.
The market capitalisation for all shares and bonds listed on
the market stood at about 2.7 trillion shillings ($30.75
billion) at the end of 2013.
($1 = 87.8000 Kenyan shillings)
(Editing by Edmund Blair and Susan Fenton)