, NAIROBI, Kenya, Nov 6 – Manufacturing firm, Flame Tree Group has began trading its entire 162 million shares on the Growth and Enterprise Market Segment (GEMS) at the Nairobi Securities Exchange.
Flame Tree Group Chairman George Theobald said the new shares will trade at Sh8 per share.
Founded in 1989, this is the first local manufacturer to list on GEMS.
“Flame Tree Group is an attractive stock because of its wide range of products under the plastics, cosmetics and food processing lines of business. This diversification of the group’s product portfolio helps stabilise its revenues and reduce dependency on one industry,” Theobald said.
Flame Tree Group is a Pan-African business with manufacturing presence in six countries including Kenya, Ethiopia, Mozambique, Rwanda, Mauritius and Dubai.
The group recently closed a successful private placement with institutional investors, which raised Sh194 million, thereby achieving the shareholder criteria for the GEMS listing.
“The private placement showed great institutional investor confidence in our strategy of building a truly regional and diversified consumer manufacturing group. And the listing will give more Kenyans exposure to the growth of the business,” Flame Tree Group, CEO Heril Bangera said.
On his part NSE Chairman Eddy Njoroge noted that it was time for small companies to venture into the NSE via GEMS to add their value as well as raise the competitiveness.
“By undertaking this listing, Flame Tree Group has challenged non-listed companies especially those that are family owned to join them by listing on the NSE,” Njoroge said.
Flame Tree Group manufactures and owns mass market brands including, Roto Tanks, Jojo Plastics, Rino Tanks, Zoe, Cerro, Alana Skin, Siora, Happy’s and Buildmart.
Burbidge Capital is the nominated transaction advisor on the NSE Listing while Faida Investment Bank is the sponsoring stockbroker to the listing.