Flame Tree Group shares start trading on Nairobi Securities exchange

Nairobi Securities Exchange Chairman Eddy Njoroge (right) watches as Flame Tree Group Chairman George Theobald rings a bell to mark the firm's listing on the bourse yesterday. [PHOTO: DAVID NJAAGA/STANDARD]

NAIROBI: Kenya’s first local manufacturer to list on the Nairobi Securities Exchange (NSE) has begun trading.

The Flame Tree Group started trading its entire listed 162 million stock in the Growth and Enterprise Market Segment (GEMS) at Sh8 per share.

Group Chairman George Theobald described the new shares as attractive because of the firm’s wide range of products under the plastics, cosmetics and food processing lines of business.

ONE INDUSTRY

“This diversification of the Group’s product portfolio helps stabilise its revenues and reduces dependency on one industry,” he added.

Flame Tree Group is a pan-African business with a presence in six countries including Kenya, Ethiopia, Mozambique, Rwanda, Mauritius and Dubai.

The firm recently closed a private placement with institutional investors that raised Sh194 million, thereby achieving the shareholder criteria for the GEMS listing.

Its founder, Heril Bangera, said the successful private placement is evidence of institutional investor confidence in the firm’s strategy of building a regional and diversified consumer manufacturing company and will allow more Kenyans invest in the business.

NSE chairman Eddy Njoroge said the Flame Tree Group has laid down a challenge for family-owned non-listed companies by opting for the bourse.

“Manufacturers, like Flame Tree Group, are critical in building a diversified Kenyan economy, and I am confident this is the start of a long and fruitful relationship between the group and NSE. We are expecting more Kenyan businesses to follow them in using our capital markets to fund growth and expansion,” he said.

The group manufactures and owns mass market brands including, Roto Tanks, Jojo Plastics, Rino Tanks, Zoe, Cerro, Alana Skin, Siora, Happy’s and Buildmart.

Heril Bangera said there is a lot of value tied to the brand portfolio and it’s competitive advantage is its strategy to manufacture in Africa for Africans.

“In-country manufacturing enables us to tailor products and keep costs down. We expect the group to expand very significantly over the next five years,” said Bangera.

LISTING ADVISER

Burbidge Capital is the nominated transaction adviser on the NSE Listing while Faida Investment Bank is the sponsoring stockbroker.

Burbidge Capital Edward Burbidge, CEO said “This listing by way of introduction, provides Flame Tree Group with a broader base of shareholders, added liquidity for existing shareholders and an increased profile.”