Credit Bank Plc, an SME-based Bank in Kenya, has announced its intention to list its shares on the Nairobi Securities Exchange (NSE) by the end of 2023.
The bank aims to raise at least KSh1 billion from the public through this initial public offering (IPO).
Grace Nyachae, the bank’s longest-serving director, stated that the move is in line with the bank’s vision to expand its market presence and attract a wider range of investors.
According to Nyachae, the listing is expected to bring numerous benefits to both the bank and its shareholders.
These benefits include increased visibility, improved liquidity, and access to a broader investor base.
“This pivotal step of listing on the NSE will open up a new avenue for public investment and deepen our connection with the community and partners,” she said.
Nyachae also mentioned that the Capital Markets Authority and the Central Bank of Kenya have already cleared the lender for listing on the main segment.
“We’re elated to meet the standards for listing in the NSE’s main investment segment,” she said.
The listing aims to elevate Credit Bank’s standing from a tier 3 to a tier 2 bank.
“Our shareholder equity has grown from Ksh 1.4 billion in 2015 to Ksh four billion this year,” Nyachae pointed out, adding that with the listing, the goal is to raise an additional Ksh 1 billion.
Requirements to list on the Main Market Investment Segment of the NSE
- The issuer must be a company limited by shares and registered under the Companies Act.
- The issuer must have a minimum authorized, issued, and paid-up ordinary share capital of Kshs. 50 Million.
- The issuer’s net assets immediately before the public offering or listing of shares should not be less than Kshs. 100m.
- Shares to be listed shall be freely transferable and not subject to any restrictions on marketability or any preemptive rights.
- Directors and Management must be ethical, not bankrupt, and not have any criminal proceedings. They must have suitable senior management with relevant experience for at least one year prior and must not be in breach with any loan covenant, particularly on debt capacity.
- The issuer shall have audited financial statements complying with International Financial Reporting Standards (IFRS) for an accounting period ending on a date not more than four months prior to the proposed date of the offer or listing for issuers whose securities are not listed at the securities exchange, and six months for issuers whose securities are listed at the securities exchange.
- The issuer must have a clear future dividend policy.
- The issuer must have declared profits after tax attributable to shareholders in at least three of the last five completed accounting periods to the date of the offer.
- The issuer should not be insolvent and should have adequate working capital.
- At least 25% of shares must be held by not less than 1000 shareholders, excluding employees of the issuer.
- In case of listing outside the Kenyan jurisdiction, a certificate of no objection must be obtained from the foreign securities exchange and regulator.
