The Nairobi Stock Exchange
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Kenya seems to finally be moving away from an economy based mainly on the sale of agricultural goods.
The Nairobi Stock Exchange seems to be doing a good job of “monetizing” individual wealth and expanding people’s views on how and where to invest their money.
IPO’s like Kengens’, Scangroup and others seem to be exciting the masses.
Is anyone trading shares or buying shares on the exchange? let us know what your experiences have been.
Just like Warren Buffet, i dont invest in things i dont understand and the NSE is one of them.
(Do you know thats why he doesn’t own Microsoft shares???)
I’d rather operate like a VC…see opportunity in a business/project…invest…reap benefits & pull out.
Interesting (what is it about the NSE that you don’t understand?)
A friend of mine just sent me a prospectus on the Scangroup IPO. I guess you can now buy shares, but the prospectus didn’t make sense to me.
I pasted it below if you’re interested in reading it.
SCANGROUP LIMITED
(Formerly Media Initiative East Africa Limited)
Incorporated in Kenya under the Companies Act (Cap 486), Registration Number 84220
Registered Office: Plot L.R. No 209/290/4/1, The Chancery, Valley Road
PO Box 34537, 00100, Nairobi
ABRIDGED PROSPECTUS
relating to
An Offer For Subscription Of Up To 9,000,000 New Ordinary Shares Of KShs. 1/= Each
And Offer For Sale Of Up To 60,000,000 Fully Paid And Issued Ordinary Shares Of KShs. 1/= Each At KShs. 10.45 Per Share (together the “Offer Shares”)
Share capital following the Offer assuming it is fully subscribed:
Authorised Issued
Nominal Value Number of ordinary Shares Nominal Value Number of ordinary shares
KShs. 180,000,000 180,000,000 KShs. 159,000,000 159,000,000
IMPORTANT NOTICE
This is not the Prospectus for the Issue
When considering what action you should take, it is strongly recommended that you consult your investment adviser, stockbroker, banker, accountant or other professional adviser
This document is an abridged prospectus and is issued in compliance with Regulation 16. (4) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures), Regulations, 2002 for the purposes of giving information to the public with regard to Scangroup Limited (the “Company” or “Scangroup”).
A copy of the Prospectus, comprising an Offer for Subscription and an Offer for Sale (an “Offer”) together with the documents required by Section 43 of the Companies Act (Cap.486) have been delivered to the Registrar of Companies in Nairobi for registration
The Capital Markets Authority (“CMA”) has granted approval for the Offer to be made to the public and for the listing of shares in Scangroup on the Main Investment Market Segment of the Official List of the Nairobi Stock Exchange (“NSE”). As a matter of policy, the CMA assumes no responsibility for the correctness of any statements or opinions made or reports contained in this Prospectus. Approval of the Offer and listing is not to be taken as an indication of the merits of the issuer or of the securities.
Application has also been made to the Nairobi Stock Exchange Limited (“NSE”) for the admission of 159,000,000 ordinary shares in Scangroup Limited and approval has been granted by the NSE for the admission of the entire issued share capital of Scangroup on the Main Investment Market Segment of the Official List of the NSE. As a matter of policy, the NSE assumes no responsibility for the correctness of any of the statements made or opinions or reports expressed or contained or referred to in this Prospectus
Any prospective investor wishing to purchase or subscribe for the Offer Shares on the Opening Date of the Offer, should obtain a copy of the published Prospectus from the Receiving Bank or any of the Authorized Selling Agents listed below and read the same in its entirety, prior to duly completing and signing the Application Form enclosed with the published prospectus. In the event of any doubt, it is strongly recommended that you consult your investment adviser, stockbroker, banker, accountant or other professional adviser. All terms utilised in this abridged prospectus shall have the definition indicated in the published prospectus
On understanding the NSE,i know enough about Going Public & Going Private but other issues arise…
1st…there’s just too much that is said & not said that i’d rather keep off. Look at what happened with Kengen…then Uchumi…& my eyes are now WIDE OPEN on Scangroup’s IPO.
2nd…i’ve not seen anyone in Kenya makes millions off the NSE. They make money elsewhere then invest it in the NSE.
3rd…most of the investments are too conservative. I’d like to think of myself as a risk taker.
Thanx for posting the prospectus but cld you kindly fwd it to me at sanebrownlady@yahoo.com
@kagz – then you are NOT acting like Buffet! He goes in for the long-term not the VC style business!
BTW, he said that not investing in MS was one of his worst decisions. Bill Gates made a special trip to convince him why MS was a great business. If WB had put money into MS, he would have remained the richest guy in the world.
@ke – where is the prospectus? Wot you have posted is not it… Please post/upload or link…
It’s an abriged version of the prospectus. That’s all I got. If I get a more complete version, I will post it here.
The only thing I didn’t paste were the brokerage firms in Kenya where one could buy the shares.
@KE – Don’t worry coz I expect http://www.scangroup.biz to have it up by Jul 17 (per their website) so we will be able to get the real deal!
I think it will be over-subscribed since there is a dearth of IPOs. There was an 18B refund & all Scangroup is raising is a mere 800M… PLUS the corporates (pensions, fund managers) will be able to buy in… Some of these guys (e.g. Old Mutual) have the ability to buy Shs 800M of shares at one go!
What 18B refund are you referring to?
The KenGen refund i.e. oversubscribed thus funds refunded to investors.
I hope I have refund amount correct but it was around that much…
BTW, haven’t seem your comments on my blog… Please visit!