Deacons gets green light to list on the NSE in August
Clothing retailer Deacons is set to list on the Nairobi Securities Exchange (NSE) by introduction in august, ending its long wait
The firm will list 123, 558,228 shares at Sh15 each, giving it a valuation of Sh1.85 billion.
Deacons has been trading its shares over the counter since 2010, after it floated a public offer which raised Sh700 million to fund expansion. The firm has long toyed with the idea of listing but appeared hesitant often postponing the plans.
The shares will be listed on the alternative investment market of the NSE. Listing by introduction indicates the firm will not be raising additional capital, but instead creating an opportunity to bring on board new investors.
“Listing will unlock value for shareholders and will give new investors the chance to participate in the region’s largest fashion and lifestyle company that has a strong bouquet of leading fashion brands,” Deacons Chief Executive Officer Muchiri Wahome said.
Deacons opened its first store in 1958 when it was the franchise holder for the Marks & Spencer brand.
Over the last five decades, the clothing retailer has been acquiring franchise rights for several international brands to fuel its expansion.
Deacons runs outlets such as Mr Price, Trueworths, 4U2, and Angelo with a presence in Uganda, Mauritius and Rwanda.
The firm is also in discussions with other top international brands with Deacons expected to make moves to position it as a top fashion retain chain in East and Central Africa. Deacons plans to increase the regional store count to 60 by 2020 from the current 33 stores.
“Going forward we will execute this philosophy through adding fresh brands, entering into franchise agreements and building a successful online presence,” Deacons chairman Peter Njoka said.
Deacons posted a net profit of Sh113.8 million in 2015, driven by a 23 percent jump in revenues which stood at Sh2.4 billion.
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