Deacons Chairman Peter Gichuru says the company will be listing as a way of introduction with an initial price of Sh15 per share.
“This is a journey that started in 2006 with a private placement that invited institutions on board, and there after a Public Offer was done in 2010 that raised money; then subsequent to that we are now saying that this is the time we are moving from over the counter trading which is essentially not easy as when you get listed,” Gichuru said on Monday during an investor briefing.
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.
It will provide an opportunity for stakeholders and other local and international investors to participate in the company’s growth prospects as well as provide it with access to capital markets
The company suspended its Over The Counter (OTC) trading on July 25 after receiving approvals from the Capital Markets Authority and the NSE.
In 2006 the private placement and rights issue of Sh144.8million help the retailer to finance refurbishment, expansion of store network and launch of new brands. In 2010, the public offer, raised Sh800 million.
Deacons which operates in Kenya, Uganda and Rwanda has a brand portfolio which includes, 4U2 and Angelo, which are own brands, Mr Price, Truworths and Babyshop which are franchise. The others include Bossini and Lifefitness are under exclusive distribution agreements.
“Deacons has ensured that all Franchise relationships are secured through renewable contracts. Currently, no franchisors are expected to cancel their contracts in the near term,” he said.
Apart from listing, the firm plan to increase its stores from the current 33 to 38 by the end of 2016. This will include two stores in Rwanda in the next two months.
“Given the continued growth of the middle class and retail property development, the Company is keen to penetrate secondary cities in Kenya and launch more brands in Kigali and Kampala,” Gichuru says.
In 2015, the company recorded a 23 percent rise in revenues to Sh2.4billion largely driven by improved performance in core brands continued growth from Uganda and Rwanda.