It has been about 2 years since a company listed on NSE. Guys why do you think Kenyan businesses people don’t like listing their companies?
if it is about costs, the GEMS segment was supposed to provide a less rigorous system for listing.
If you argue that it is because Kenyans like to hide ill gotten wealth, then no company should be listed on Lagos stock exchange.
Kibaki understood the importance of a vibrant securities market and the role it plays in providing financing for the economy. He listed public companies as a way of allowing Kenyans ownership of public jewels. Sadly, Uhuru’s guys do not seem to grasp this concept and the growth has petered out. An economy the size of Kenya should not have just about 55 companies listed.
Corporate governance has also suffered in the intervening period, KQ comes to mind as one that destroyed minority shareholders wealth. Nobody in that board was prosecuted, if it was in the US, Naikuni would be Madoff’s cellmate. Currently 3 companies have negative capital and are therefore insolvent, they are still trading .
The corporate debt segment was actually very vibrant,then chase bank happened and it all dried up.
What exactly do you think ails NSE and how can we cure it?
Most IPO’s are exit scams. In the long run, they do turn around, but in most cases, people list their companies to offload their shares at a big premium to the less informed and unsuspecting public. The most recent IPO’s were not well received by the public because the average man is becoming smarter. You will only see new listings when there is a vibrant bull market.
I don’t think its a scam, I believe the average retail investor is not skilled enough to evaluate stocks and therefore got burned during safcom IPO period. Mutual funds are yet to really take off, @Charley Flani kuja unukishe kitunguu.
We also haven’t had a good IPO in a long time.
They are not necessarily scams, but IPOs sell at huge premiums. As such, professionals avoid them and the retail investors are shy because of that safcom IPO. There are new instruments such as REITs but the average investor does not understand them well.
one company tried to list 2-3 years ago .it was a REITS company i forgot the name. It was disaster. Most of the times i lament that ’ Kibaki regime was the best regime ever." There was money moving around and their biggest scandal was Anglo leasing ya 2B.
Now come these young boys who all they think is amassing wealth for themselves. This kills the goodwill of people who are willing to invest since hakuna confidence. I can invest in Chase bank then Ulliam and his cronies take loan knowing that mtawapeleka wapi and down my bank goes. Its all confidence nothing else. Investors confidence is down these days with all these corruption cases flying all over .
I am very disappointed by Fahari so far but there is potential for the future. its a good time to add units. What am wondering is why mature companies such as bidco, brookside etc don’t list.
it actually did list but didn’t raise the envisaged amount, which is a good thing because the little we gave them they haven’t fully utilized.I actually recommend buy for long term.
For me I believe in privacy on matters business. CMA has alot of strict regulations for a normal businesses may find it hard to adhere. And I believe Kenyans with businesses still believe in maintaining the personal aspect of it.
which reminds me …CYTONN . now these guys their books are kinda cooked. their cash flow has nothing to show apart from assumed land appreciation… then they list this as profit. I hear they wanted to list on main NSE after they are done with GEM but ill pity the guys who will buy this.