The segment was launched in January this year geared at supporting mid-cap companies’ strategic aspirations by providing them with access to risk capital through the capital markets.
Among the nominated advisers include CBA capital, NIC capital, Dyer and Blair, Standard Investment Bank, and CFC Stanbic financial Services among others.
NSE Chief Executive Officer Peter Mwangi pointed out that with the support of the nominated advisers various small firms can get access to capital for growth, boost their company’s profile, and create value for their respective shareholders.
“Listing gives you the opportunity to raise capital to fund acquisitions as well as growth. You can also use your listing as a springboard into the rest of Africa,” he explained.
Mwangi said that the growth enterprise market segment is a market for ambitious companies, adding that the market will thrive in the cause of the year.
“GEMS benefits Small and Medium Enterprises (SMEs) that cannot be listed at the Nairobi stock exchange due to high requirements. SMEs should take advantage at tap into this new Market segment,” he explained.
Mwangi revealed that for a company to be enlisted on GEMS they must have a Sh10 million share capital, at least Sh100,000 shares in issue, a public registered company and legally registered under companies act.
“Listing fee capped at Sh250,000,application fee capped at Sh250,000 and annual listing fees at Sh250,000. There will be no stamp duty shared on capital of a company listed on the exchange, ” he announced.
Some of the benefits of being listed include Increased visibility-both locally and international market support -creditors, suppliers Investors confidence – who then become your brand ambassadors Increased demand for products and services, ease of company’s regional expansion and overall increase in profitability.