NAIROBI, Kenya, May 31- Longhorn Publishers has announced plans to cross list in the East African markets in the coming months.
Managing Director Simon Ngigi says the company which has presence in Uganda, Tanzania, Rwanda and Burundi aims to ensure that citizens in those markets can own a piece of the company.
Ngigi says the successful Sh530 million Rights Issue now opens doors for cross listing in the EAC markets.
“We’ve got boards set up in Uganda, Tanzania and Rwanda. So the next logical step is for us to cross list in those markets to enable the children and citizens of those countries to enjoy the fruits of Longhorn,” Ngigi said on Tuesday.
He was speaking during the bell ringing ceremony to kick off trading of the 126 million shares of the Rights Issue at the Nairobi Securities Exchange (NSE).
The shares were sold at Sh4.20 per share at a rate of 0.86 shares for every share held.
The funds raised are aimed at enabling the company increase its product portfolio as well as venture into new African markets like Democratic Republic of Congo and Guinea.
“Among other things as you are aware is product diversification where we are putting aside more than Sh80 million to get new product that target non primary and secondary market, which would mean tertiary institutions,” Ngigi added.
The tertiary institution products will include university textbooks, medical colleges text books, veterinary colleges, accounting colleges books and others.
The listed publisher plans to partner with both local and international firms to assist in the production of content for the tertiary books like for medical colleges.
Up to Sh53 million will be used to enhance the publisher’s digital content segment.
In the Rights Issue, Centum investment company invested at least Sh390 million and managed to raise its stake from 31 percent to a controlling stake of 60 percent.
Centum which held 45.7 million shares previously, now has 118.3 million new shares being acquired during the rights issue.