TransCentury to list at Sh2,050 a share

Posted on February 9, 2011

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Nairobi Stock Exchange where TransCentury expect list by end of 2011

Excitement may have coursed through the investing public, including small retail speculators, after Business Daily’s lead story on TransCentury going public hit the stands today.

The story indicates that the shareholders of the financially and politically formidable private equity company agreed during their meeting that the process of listing at the Nairobi Stock Exchange begins immediately and be concluded by end of the year.

However, unlike most Initial Public Offerings that most Kenyans are used to, this share would cost an arm and a leg. According to the story, the investment company is targeting a listing price of, yes, a princely Sh2, 050 per share.

Going by a requirement by the NSE of a minimum of 100 shares, this stock might set back any investor Sh205,000 to be a shareholder

But it will be coming into the market by way of introduction meaning they owners of the company are neither targeting the mass market for it nor are they looking for money.

The price seems too steep for majority of the investors but it seems to be in line with the owners who apparently feel their efforts to build the company to what it is today warrants them a premium price.

Why? It is worth noting that in 2007, when the firm carried out a private placement, they punted a share at Sh712.

If their Sh2,050 target price is carried to term at listing, the share will be the most expensive in the history of the NSE.

Currently, at the stock market, among the highly priced shares include StanChart (Sh320), Carbacid (Sh311) and BAT (Sh300).

TransCentury was founded in 1998 with a membership of 29, but the number is said to have increased to at least 50.

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