Why drought in local IPOs should keep Kenya awake

Former Nairobi securities exchange (NSE) Chairman Eddy Njoroge (second left) watch as Flame Tree Group Chairman George Theobald (left) rings a bell to celebrate the Group’s listing on Nairobi bourse, Nairobi. With them is the group’s CEO Heril Bangera (Second from right) and Director Frank Ireri. [David Njaaga, Standard]

There were lots of initial public offerings (IPOs) at the heart of Kibakinomics. Most start-ups dreamed that one day, they would go for an IPO and sell off to the public or list to achieve two main objectives.

One is to get the true value of the firm. The market is often efficient; it quickly uses all the available information to put a value to the firm.