More companies are showing the interest to list on the Nairobi Securities Exchange (NSE) with the latest being the Safaricom Investment Cooperative (SIC), who was inducted into the Ibuka Incubation program.
SIC has conducted major projects in the past including real estate projects such as Rongai Royal, Ruaka Ridge apartments and other land sales across the country.
The Ibuka incubation hopes to educate prospective companies on what is need to list on the NSE and gives them a good ground to begin their share trade.
“Safaricom Investment is the leading cooperative in Kenya today,” Bob Karina, the Vice Chairman at the NSE said. “Safaricom Investment will benefit from visibility, long term corporate sustainability, access to consultancy services, access to equity among others.”
The Safaricom Investment Board Chairman, Peter Gichangi said that “We have gained and learnt a lot over the past 10 years and we could not be more proud in joining this program.”
In an earlier interview with David Waggema, Head of Business Development at the NSE, most companies have shied away from listing at the bourse due to lack of adequate information on selling public shares, the fear of being scrutinized by government agencies and disinterest.
However, Waggema said that the Ibuka program is aimed to clear the uncertainty and rejuvenate the activity at the securities exchange. It is also a way growing companies can gain new liquidity and push out their products.
Safaricom Investment Cooperative will be the seventh company admitted into the incubation program. Others include MySpace Properties, Vehicle And Equipment Leasing (Vaell), Blue Nile rolling mills, Moad Capital, Globetrotter with tea exporter APT Commodities being the first incubated company in January 2019.
Cooperatives have usually been closed organization only focusing on real estate as their only investment option. The success of SIC could signal more activity in the cooperative sector which is laden with cash reserves.