NSE-Web-Prospectus-2014

Chairman’s Statement
(USD 2.89 billion) while the largest single corporate bond
transaction had bids in excess of Kshs 25 billion (USD 288
million). The Exchange is one of the leading exchanges in
Africa.
NSE is on a mission to seek world exchanges classification
change from “frontier status” to “secondary emerging
status” in the future. Towards this end, NSE supports
accelerated capital markets development. A number of
strategic initiatives will be required to be implemented and
NSE will play its rightful role accordingly.
This Prospectus provides significant amount of information
and I therefore urge you to read it carefully.
On behalf of the Board, I look forward to welcoming you as
a shareholder of the NSE.
Dear Investor,
On behalf of the Board it is my pleasure to present this
Prospectus to you on the Offer of the NSE and Self-listing
of the NSE on the Main Investment Market Segment of the
Exchange.
Mr. Edward Njoroge
Chairman
I am also pleased that the NSE has achieved full demutualization.
The Offer is in line with global best practice for exchanges
and is aimed at improving the effectiveness of the NSE and
further strengthening its corporate governance structures.
Upon its Self-Listing, the NSE will become the second listed
exchange in Africa.
Kenya`s Vision 2030 has identified six key sectors that are
expected to deliver the 10% economic growth rate per annum
envisaged under the “economic pillar” and one of them is
‘’financial services’’. Capital markets is a critical sub-sector of
“financial services” and we believe that the NSE is playing its
significant role in attracting foreign capital and growing the
domestic savings and investment rates to achieve the goals
under the above plan.
As of 31 December 2013, The Exchange had over 120 listed
equities and bonds for a total market capitalization of over
Kshs 2.7 trillion (USD 31.18 billion) which was over 75%
of Kenya’s GDP. In the year 2013, the aggregate-purchase
and sales of bonds was Kshs 914 billion (USD 10.56 billion)
while purchases plus sales of equities was Kshs 311 billion
(USD 3.59 billion). At the Exchange, the largest single equity
primary transaction had bids in excess of Kshs 250 billion
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