First Sharia compliant firm gets nod to list on bourse

Nairobi; Kenya: Investment company Kurwitu Ventures will be the first Sharia compliant firm to list on the Growth and Enterprises Market Segment (GEMS) at the Nairobi Securities Exchange (NSE).

The listing and commencement of trading in Kurwitu shares at the NSE will begin on November 13, 2014, after it received regulatory approval. "We are listing on the NSE as an industry pioneer in the provision of tailor made financial products and services that adhere to Islamic Sharia Law," said Kurwitu Ventures Executive Director Abdirahman Abdillahi.

Freehold land

It becomes the third company to list on the GEMS at the NSE this month after Home Afrika and Flame Tree Group. The firm is to list 102,272 of its ordinary issued shares.

The current assets of the company are valued at Sh105 million with Sh102 million of them being freehold land. "The reason we are listing is that most of these products need a listed vehicle to attract investors. We can also use our listed identity to come up with products on the back of our name," he added.

The company has opted to list its shares by way of introduction on the NSE. This is expected to set the foundation for a broader shareholder base in the future.

"We will have to raise extra money to fund our core operations through a rights issue and increase the number of shareholders," he said, adding the firm will not only focus on attracting Islamic investors but others as well regardless of their religion.