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KA-INVESTOR

• July 06, 2009
• Where Did the IPO’s Go?

  Posted: July 6th, 2009, 9:13am EDT

  If my memory is not failing, there were several offer slated for the 1st half of 09 that have just disappeared into oblivion. Nothing is being mentioned of them in our Kenyan business media. Some that were slated for this year included DPL Festive Ltd, Telkom Kenya, K-rep and Nakumatt. The most recent announcement of intentions to list on the NSE has been Radio Africa (just launched KISS TV), Family Bank and Consolidated bank.
  
  Others that also mentioned they’ll be seeking to list anytime were KenGen’s 2nd offer, Sarova Hotels, Wananchi Online, NSE (Demutualization) and Suntra Investment bank.
  
  Also in line were several government of Kenya privatizations, with the likes of Kenya Wines Agencies, Kenya Ports Authority, Kenya Pipeline Company, Kenya Meat Commission and New-KCC being fronted. I think the government privatizations are still on course with the recent appointment of two transaction advisors.
  
  BLUE Financial Services from down South Africa was also planning to cross list on the NSE but has since gone mum on when this will ever materialize. Similarly, with the finalization of the integrated East Africa bourse Ugandan Tanzanian and even Rwandan firms were set to cross list on NSE. But this will remain a pipe dream for a few years to come has the four countries sort out their ‘abusive’ relationships.
  
  Sectors to invest in:
  
  Regardless of the IPO’s dry spell I still consider Financials (especially banks), telecoms (Safaricom n Telkom Kenya on listing), construction (ARM’s, Bamburi, not Olympia), ICT (Accesskenya) and energy (KenGen, KPLC and KPC – despite the inefficiencies n desputes) as viable sectors to invest in at the NSE. Agriculture and Insuance are too risky for now.