Deacons Kenya plans to list its shares on the Nairobi Securities Exchange (NSE) for Sh15 each valuing the clothing retailer at Sh1.85 billion.
With the listing, the retailer’s shares will stop trading on the over-the-counter (OTC) market next Monday where they have been exchanging for the last six years as the company dithered on selling its shares to the public.
The listing by introduction of 123,558,228 shares is scheduled for August 2, at the NSE’s alternative investment market segment (Aims).
“The shares will be listed on alternative investment market of the Nairobi Securities Exchange on August 2, 2016,” said the company in a statement.
Deacons operates clothing outlets such as Truworths and Mr Price in four markets; Kenya, Uganda, Rwanda and Mauritius.
Listing by introduction signals the company will not be seeking additional capital from the market. The mode is an easier and faster entry route to the stock market with fewer regulatory scrutiny compared to an initial public offering.
The company has picked Kestrel Capital as its transaction advisers with Coulson Harney as legal advisers and Deloitte & Touche its reporting accountants.
The firm is riding on the rise of middle class in the country to expand operations following profit growth.
Last year it posted an 85 per cent growth in after tax profit to Sh113.8 million from Sh61.4 million the year before.
The company has been operational for nearly 60 years having been founded as a franchise for Marks & Spencer for East African in late 1950s and did away with the franchise when the Kenyan government restricted importation of foreign goods. It then began to partner with the local textile industry which supplied its stores.
In the early 1990s, the economy was liberalised allowing Deacons to deal with international brands again. It acquired the Truthworths franchise in 1999. It launched locally owned 4U2 brand in 2003 targeting the middle class and brought in Mr Price in December 2007 with its first store at The Junction Mall.