UK property firm puts off listing on Nairobi bourse

UK-based property company St Paul’s that planned to list on the Nairobi Securities Exchange (NSE) by the end of the year has postponed the offer to 2016.

The company has also stopped a capital raising plan, citing an unfavourable market.

“The board of directors of St Paul’s Property Trust PLC in consultation with Burbidge Capital as nominated aisers, the Capital Markets Authority (CMA) and regulators of the NSE, as well as the promoters, Kenswick Capital Management Ltdhave resolved to review the placement with a view to adjusting it to an IPO in the new year subject to regulatory approvals,” said St Paul’s chief executive Richard Britten Long.

The firm was supposed to list on the NSE by the end of the year after raising Sh5 billion from the Kenyan market.

The real-estate company was to invest the funds in a manner similar to an Income-Real Estate Investment Trusts (Reits). St Paul’s had gone ahead to appoint Vincent Rague, a Kenyan, to its board prior to the listing.

Companies have found it difficult raising funds in the last few weeks due to unfavourable market conditions. The high interest rates on Treasury bills and bonds have made investors opt for government securities over company bonds.