Longhorn new shares start trading on Nairobi Securities Exchange

Longhorn Publishers’ 126 million new shares have begun trading at the Nairobi Securities Exchange (NSE) following a successful rights issue.

The firm, which is the only listed publisher in Africa, raised Sh533 million in the recently concluded rights issue that saw existing shareholders buy additional shares at Sh4.20 per share.
The Sh4.20 price offered a discount of 18 per cent  compared to the Sh5.10 trading price prior to the rights issue.

According to the publisher’s Group Managing Director Simon Ngigi, the successful cash call will be used to retire debt, diversify the firm’s offering, increase digital content as well as enter new markets.

“Our main focus is to consolidate growth as we begin to tap the market in West and Central Africa, while also ensuring we remain at the cutting edge of technology through continuous innovation,” he said.

The company has set eyes on markets such as the Democratic Republic of Congo, Guinea, Ethiopia, South Sudan, Ghana and Zimbabwe.

Currently, it operates in Kenya, Uganda and Tanzania. Speaking during the bell-ringing event to formally start trading of the new shares, NSE Chief Executive Officer Geoffrey Odundo called on other corporates to turn to the bourse when seeking capital to finance their business strategy.

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“The success of this issue is an example of the abundant opportunities our market has to offer and a clear demonstration of the affirmative investor sentiment towards the company’s continued growth and expansion strategy supported by the capital markets,” said Odundo.

With up to 10 per cent of the funds (Sh53 million) lined up towards the firm’s digital offering, the firm is keen to increase the number of titles on offer to catch up with the shift towards digital platform.

Education, Science and Technology Principal Secretary Belio Kipsang, who presided over the event, said that emphasis on digital content will compliment government’s education vision.

“It is heartening to see the private sector investment that is geared towards supporting government efforts to improve education and learning,” he said.