14 April 2016

Kenya: Deacons Starts Plans to List on NSE

Nairobi — Deacons Kenya has commenced plans to list on the Nairobi Securities Exchange (NSE).

This comes after the Board of Directors of Deacons Kenya Limited resolved that subject to shareholder and regulatory approvals, it would list the company shares by introduction on the NSE.

The decision will position the company as the first fashion retailer to list on the bourse.

Deacons Kenya Chairman Peter Njoka says the primary purpose of the listing is to offer the company and its shareholders liquidity, exit options and price discovery in relation to the shares.

"In addition, the listing will give an opportunity to stakeholders of the company and potential local and international investors the platform to participate in the company's growth prospects and provide access to funding options in the capital markets for future expansion," Njoka added.

In 2010 the firm carried out a public offer and raised Sh704.2 million with the allotment of 11.2 million new shares.

"We are excited to kick start this process at a time when the Company has registered strong growth. Our store footprint will grow from 25 stores at the end of 2010 to 38 stores at the end of this year," said Deacons Kenya Chief Executive Muchiri Wahome.

Wahome says the firm has also adopted a 2020 strategy that is based on building a 60 store retail chain supported by new brands, county expansion and a robust e-commerce platform.

Deacons registered a total comprehensive income of Sh100.6 million in 2015 which was a 73 percent increase over prior year.

This was attributed to a 24 percent increase in revenue as well as the completion of the sale of its stake in the Woolworths business in Kenya.

Last year the group launched two stores at the Acacia Mall in Kampala, Uganda and two stores at the Garden City mall on Thika Road, Nairobi.

In the first quarter of 2016, the group launched a further two stores at the Hub in Karen, Nairobi and has planned to launch four stores at the upcoming Two Rivers mall in Nairobi.

An additional two stores will be opened at the Kigali Heights Mall in Kigali, Rwanda later in the year.

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