Credit Bank PLC Set to Make a Splash on Nairobi Securities Exchange, Aiming to Raise Sh1 Billion in Major Listing Move!
In a bold move marking a significant shift on the financial horizon, Credit Bank PLC has announced its upcoming listing on the Nairobi Securities Exchange (NSE) by the end of 2023, aiming to garner a substantial Sh1 billion from the public. This endeavor marks a momentous event, as it’s the exchange’s first listing on its main segment in nearly a decade, following the NSE’s self-listing in 2014.
The anticipation comes on the heels of a recent capital boost for the bank. A 20 percent stake was successfully sold to Shorecap III, a private equity fund based in Mauritius, culminating in April after approvals from both the Competition Authority of Kenya (CAK) and the Central Bank of Kenya (CBK). This capital injection served as a green light for Credit Bank’s forthcoming public debut, signaling investor confidence in the bank’s growth prospects.
Holding a pivotal 27.1 percent stake through the Sansora Group of Companies, Credit Bank is anchored by the late politician Simeon Nyachae’s family. Grace Nyachae, the company’s longest-serving director, expressed confidence despite the current market downturn, stating, “There is no perfect timing for anyone to go to the market. Over the past eight years, the bank has significantly increased its shareholder equity from Sh1.4 billion in 2015 to an impressive Sh4.0 billion. Our forward trajectory involves raising an additional Sh1 billion through this listing.”
President William Ruto’s visit to the NSE in October 2022 set a transformational stage, with his call for at least five State-owned entities to go public within a year, sparking a challenge for the private sector to do the same. “Between five and 10 public enterprises that are mature should be listed in the next 12 months,” stated Ruto, fostering an environment of change and progress.
While the year-end 2022 saw Credit Bank reporting a loss before tax of Sh66.0 million on Sh30.9 billion net assets, the bank’s growth remains palpable. The loan book’s impressive surge from Sh17.8 billion in December 2021 to Sh21.1 billion in December 2022 reflects Credit Bank’s robust trajectory.
In a deviation from earlier expectations of a listing by introduction, Credit Bank’s plans have taken a more ambitious path. Both the Capital Markets Authority and the CBK have given the green light for the bank’s direct listing on the main segment, bypassing a listing by introduction. This move aligns with their vision for an employee share ownership program, granting staff the opportunity to partake in this transformational journey.
As Credit Bank PLC charts this historic course, its storied history since 1986 echoes its resilience and adaptability. What began as a non-bank financial institution evolved into a commercial banking force in 1995. A strategic pivot in 2010 geared the bank toward retail-facing operations, painting the canvas for their inspiring trajectory.
Opinion: Credit Bank’s impending listing on the Nairobi Securities Exchange is a decisive stride that signals Kenya’s financial landscape’s dynamic shift. Amid market fluctuations, the bank’s vision resonates—timing isn’t everything, determination and consistent growth matter. The confidence shown by investors in the wake of the stake sale is a testament to the bank’s potential. As Kenya’s economy evolves, Credit Bank’s listing not only aligns with President Ruto’s vision but underscores the significance of robust financial institutions in driving growth.
This article was published by (marketnewsng).