TransCentury to list at the NSE in six months

By Morris Aron

It's now official, Kenya's most known investment group and the region's biggest private equity firm, TransCentury Group, will list at the Nairobi Stock Exchange in the next six months.

While announcing its results for the 2010 financial year, TransCentury said it had appointed investment firm Dyer and Blair, law firm Kaplan Straton, audit firm KPMG and public relations firm Quantum Leap as the lead advisors.

The company’s net profits doubled to Sh468 million compared to Sh234 million in 2009.

"We intend to list by introduction in the first half of the financial year," said chief executive Gachao Kiuna.

TransCentury’s going public announcement which coincided with impressive end of year financial results follows a go ahead by shareholders last month.

The company’s revenues rose by 25 per cent to Sh6.8 billion, while its net income was up by 99 per cent to Sh468 million on increased demand for house wires, armoured cables, aluminium conductors and transformers in Kenya and the region.

Revenue from the power infrastructure company grew by 22 per cent to Sh5.5 billion even after factoring in a one off cost in its subsidiary in Tanzania, while revenues from its specialised engineering division that supplies weighbridges and undertakes power sub-station construction grew by 191 per cent to Sh441 million.

Company’s businesses

TransCentury has investments in Kenya’s East African Cables, TANELEC, a transformer manufacturer in Tanzania, Rift Valley Railways and engineering firm Avery East Africa, among others.

Dr Kiuna said the firm has tripled its capacity in the power infrastructure division of companies that specialises in electricity transmission and its specialised engineering division that among other things manufactures transformers in readiness for growing demand for electricity in the East African region.

"Demand for electricity far outstrips supply and as a company, we know that recent investments in the two sectors will help drive power provision and increase revenue," said Kiuna.

"There are many customers in the region that need electricity and efficient transport systems and who are yet to receive such services. The landscape is, however, changing."

On Rift Valley Railways, which is another strategic firm that is bound to rake in millions of cash where TransCentury has 34 per cent shareholding, the consortium KURHL, has already secured $54 million with another agreement principle with banks of $100 million to turnaround railways transport.

The listing at the NSE, that will allow for more disclosures on the firm has been in progress for three years now.