Saturday, August 04, 2007

New stockbroker

Finally a new stockbroker is going to be invited to join the lucrative club that is the Nairobi Stock Exchange. The number of shareholders has gone up approximately ten times from pre-Kengen IPO, but the number of stockbrokers, through which investors must trade their shares has been stuck at 18 all that time (currently 17 since Francis Thuo was suspended earlier this year).

It's only one seat to access this Kshs. 4 billion a year industry, but that can only improve the current situation. Who should win? Ideally a bank or financial institution with an extensive branch network. CFC bank - the only bank that's also a stockbroker has the widest reach nationwide when compared to several one office stockbrokers in Nairobi

Application details here and only firms that can qualify as a stockbroker or investment bank are eligible. The Application fee is Kshs 50,000 ($700) to the NSE, and 2,500 to the Capital Markets Authority. Applications should also include a company profile and statement of financial support/bank guarantee for the bid amount which is reported to have a reserve price of Kshs 150 million ($2 million). D/L of 13/8 is just over a week away.

Other News & Follow up's

- KTN reported that the housing Finance deal (buy in by Equity) could be in jeopardy owing to a burden of borrower lawsuits that could be a major liability for the bank since the introduction of in duplum rules to the banking sector. (One plaintiff won a major case against the bank last month)

- I & M: Two European development finance institutions take up a 12% stake in I&M - Kenya’s 11th largest bank

- NIC shareholders will this month be asked to vote on right issue and bonus share - in addition to modifying the company laws to expand the bank beyond Kenya, enter insurance, custodial, and investment banking, and allow unclaimed dividends by to be reinvested by the Bank until a shareholder shows up to claim them

- Welcome to the Kenya, land of milk & honey: The Safaricom IPO honey pot has attracted interest from BNP Paribas, Citicorp, Credit Suisse, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and other banking, financial and legal giants

- Next week’s East African reports on a proposed merger in the cement industry between Bamburi and East African Portland Cement companies.

- As expected parliament, without a legitimate quorum, passed the media bill

- Weak laws and evasion are robbin Kenya of tax money.

Opportunities

- Borrow up to Kshs 1,000,000 at 0% interest from Halaal Credit, but eligible only to Kenyan Sunni Muslims.

- Diaspora conference; a conference dubbed Incorporating the Preparatory Kenya Diaspora Home-Coming Forum will take place at KICC on 14-16 August, 2007. some issues will be exploring investment opportunities in Kenya, debate the Diaspora bill 2007 , building partnerships between European and African private and public sector stakeholders, SME and Diaspora sectors be mainstreamed into vision 2030, and proposal that an annual Kenya Diaspora Homecoming week be held every August of each year. Details can be got from info@kenyadiaspora.go.ke

- Design a logo and come up with a motto for the Kenya Investment Authority :

some jobs

- AON: retail broking manager, senior business development executive (health). Apply to HR@aon.co.ke by 17/8
- Chief executive officer at the export processing zones authority. Apply through manpower associates by 14/8
- KCB: branch managers, business banking managers. Apply to recruitment@kcb.co.ke by 17/8
- Safaricom: Investigator, senior fraud analyst, senior information security officer, senior information systems auditor, and a dozen technical jobs. Apply to
hr@safarciom.co.ke by 10/8
- UAP: Relationship officer, internal risk surveyor, agricultural underwriter. Apply to recruitment@uapkenya.com.

8 comments:

MainaT said...

New broker will be a good idea. That leaves 2 seats still unoccupied. The more the better in my opinion, but Kimunya would do well to consider setting capital limits for brokers as well.

Odegle said...

what happens when they finally list NSE at the NSE?

don said...

ksh150 Mill for the seat. I wonder how many businesses have put in an offer.

Banks... How many non-seat holding brokers do you believe operate in Kenya.

Do you know what the average % per trade they pay to the seat holder they go through? Is this a viable business if you are an experience broker?

Anonymous said...

with globalization and interlinking of world economies. now with teh markets being massacred here n the US - what the effect on kenya will be and what strategies can we use to plan ahead.

-For one i think the growth inm remittance to kenya and perhaps worldwid has a lot to dow with real estate boom in the US. so that scetor and dependent sectors in kenya are going to slow donw in the next 6 months.

-tightening of liquidity in the uS will have a similar effect on kenya.
-also since construction in the US will slow down - this may affect the commodities boom
just my 2 cents

Sijui said...

I assume the stock broker that everyone is referring to is Renaissance Capital? I sure hope so....this should be interesting and I hope RenCap takes its competitors to the cleaners.

They are movers and shakers in the private equity realm and have stated, I think ad nauseum now that their stated MO for the region is agressive investment and private equity deals......let's face it the Kenyan private equity scene is woefully lacking and it is refreshing that there is 'a big boy on the block' that has a huge apetite for risk and plenty of experience working in the developing world that can teach how the game is played. Mid sized and large companies should start fitting their dresses for the ball :)

hisakenya said...

The Seat at the NSE is lucrative business. Old Mutual and Renaissance Capital will bring in a lot of new changes in the business in terms of service delivery nd market reach. This will no longer be a Kenyan affair once one of the two gets the license. I for one i'm vouching for Renaissance Capital who have a lot of experience in growth economies and especially in Initial Public Offerings http://www.rencap.com/eng/about/credit_ratings.asp

Anonymous said...

is it true that the olympia rights issue was prepared by Tsavo Securities Ltd. how is possible for an gent to do a rights issue?

Anonymous said...

what do you think of this Olympia Capital rights issue? the price is 14/= and the market is 21/=. is it a good buy?

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