Entering the Bourse at a Discounted Value

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Family Bank : Entering the Bourse at a Discounted Value

By Harry Njuguna

Family Bank lists on the Nairobi Securities Exchange (NSE) tomorrow at KSh18 a share, a price set well below every valuation method used to assess the lender and well below where its stock was trading just months ago on the over-the-counter market.

• The discount looks even steeper against the bank's own numbers: profit after tax has more than doubled since 2023, book value per share has climbed from roughly KSh13 to KSh20.91, and OTC shares were trading at KSh20.28 as recently as March.

• Standard Investment Bank's five valuation methods, weighted equally, put fair value at KSh29.62, meaning tomorrow's listing price sits 39% below that blended estimate.

• The bank insists the gap is deliberate, arguing that with no new shares being issued and no capital being raised, there is no reason to price for maximum proceeds rather than for a stable debut.

• What changes immediately is liquidity, since a stock where under 1% of shares traded in a typical year is about to put 34.5% of its register into free float.

Read the full article here »»»»»

Also Watch

Bharat Thakrar — The Founder Who Lost Control of His Company

By TKWS Desk

What happens when the founder who built the company is no longer in charge? In this episode, Bharat Thakrar reflects on one of the most consequential questions in entrepreneurship, corporate governance and capital markets: How do you scale a business without losing the vision that made it successful in the first place? Bharat discusses the decisions behind taking the company public, bringing in WPP as a strategic partner, and expanding across the continent. The conversation explores founder succession, the tension between entrepreneurial vision and institutional management, and the challenge of preserving a company’s culture and long-term direction after the founder steps aside.

Read the full article here »»»»»

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Heads Up

Micah Cheserem : The Accidental Central Banker

By Harry Njuguna 

When Micah Cheserem arrived at the Central Bank of Kenya (CBK) in 1993, he stepped into an institution caught in the wreckage of inflation, scandal and political excess. An accountant rather than a trained economist, he spent the next eight years doing the unglamorous work of restoring credibility and squeezing inflation out of the system, shutting down politically connected banks and building rules designed to outlast the politicians who opposed them. The Kenya he left in 2001 was far from perfect, but its monetary institutions were stronger, more independent and more predictable than the ones he inherited. Few central bankers are remembered by the public; Cheserem's legacy lives on in the architecture of modern Kenyan finance.

Read the article here >>>>>

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