Nairobi — UAP Holdings Limited has joined a list of Kenyan firms seeking to list on the Nairobi Securities Exchange (NSE).
The company's shares opened for purchase by the public last week following the Initial Public Offer (IPO) as the company seeks to increase its footprint in the region.
The company will be seeking to raise $8.8 million from the IPO following approval by the Kenyan Capital Markets Authority (CMA).
UAP is floating 12,500,000 ordinary shares at an offer price of $0.70 per share.
UAP Holdings Group Managing Director Mr. James Muguiyi said the funds raised from the IPO would be used to boost the company's regional operations.
"This Public Offer gives us an opportunity to increase the scope of our operations and widen our footprint in the region. We already have a presence in Kenya, Uganda, South Sudan and Rwanda, our newest market.
"We have also obtained a license to begin operations in the Democratic Republic of Congo and we are finalizing entry into the Tanzania market before the end of the year," said Mr. Muguiyi.
He said the IPO gives Kenyans and East Africans a chance to own part the company and to share in the future growth of the business.
"This Public Offer is one of the key milestones in the long history of the UAP Group. Our performance has been characterized by steady, prudent and profitable growth focused on wide geographical coverage. This offer will give Kenyans, and by extension other investors in the region, an opportunity to own a stake in the company they have supported tremendously for more than 90 years," said Mr. Muguiyi.
The $8.8 million the company is seeking to raise is part of $65.3 million that UAP is targeting to use to fund to fund its regional expansion plans, strengthen the balance sheet of its existing businesses as it seeks to take advantage of strong investment opportunities present in selected markets in Africa.
In April this year, the Company successfully raised $54 million from three international private equity investors: Aureos Africa Fund L.L.C, AfricInvest Fund II L.L.C and AfricInvest Financial Sector Fund, as well as Swedfund International AB.
CfC Stanbic Bank and CfC Stanbic Financial Services are the joint transaction advisors, CfC Stanbic Financial Services and Genghis Capital are the joint lead placing agents, and Coulson Harney is the legal advisors, PwC are the reporting accountants and CDSC share registrars.