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Festive inches closer to IPO

NAIROBI, Kenya, Dec 18 – DPL Festive Limited on Thursday presented its Prospectus to the Capital Markets Authority (CMA) for approval of its intended Initial Public Share Offer (IPO).

The bread maker intends to raise more than Sh500 million in fresh capital and list all the shares at the Nairobi Stock Exchange (NSE) through the IPO in the first quarter of 2009.

The approval by the market regulator will pave the way for the IPO and set the pace for its ambitious expansion plan. The company also plans to diversify its product range to include other wheat-based products and expand its distribution channels.

“We are pleased to submit our application to the CMA for approval since we believe we have met the key requirements for listing at the NSE. These included the splitting of our shares to Sh0.50 to make the shares more affordable and the introduction of a dividend policy. The regulatory approvals will give us a new impetus to pursue our long-cherished ambitions to be in the stock exchange and also the region’s largest bread baker,” said Dipesh Shah, the company’s Chief Executive.

Calling the presentation of the Prospectus to CMA a “defining milestone” for the company, Mr Shah said that DPL Festive will unveil its new range of products in the next year. He said the firm is focussing on the commissioning of the new machinery in March 2009 that will double their capacity to 200,000 loaves per day.

DPL Festive was founded eight years ago with a dozen employees and a truck, making a paltry 8,700 loaves per day. The company has grown tremendously and currently employs over 250 people and makes 100,000 loaves per day. It now has a fleet of 28 trucks.

The firm currently has market share in Nairobi and its environs, where it predominantly operates, but plans are afoot to expand its distribution to other areas around the country.

Standard Investment Bank Ltd and PKF Consulting Ltd have been appointed as the Transaction Advisor for the issue. Co-operative Bank of Kenya will act as both the Receiving Bank and the Registrar of the Issue while Mboya and Wangongu Advocates will be the Legal Advisors. 

The Reporting Accountants for the IPO will be PKF Kenya.  Scanad Public Relations and Nuturn Bates will handle the public relations and advertising agents for the IPO respectively.

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