The Nairobi Securities Exchange (NSE) has received approval to list 31% of its stake through an Initial Public Offering (IPO), PANA reported, quoting local newspaper reports.
The Capital Markets Authority (CMA), the regulator of the capital markets, issued the regulatory approval for the listing of the NSE shares Wednesday, according to the Standard newspaper.
Eddy Njoroge, the Chairman of the NSE, welcomed the approval as a major milestone for the Capital markets fraternity in Kenya.
The Nairobi bourse is currently owned by 22 investors but the stock market changed to the Nairobi Securities Exchange after undergoing a demutualization process.
The demutualization of the NSE sought to separate the ownership of the bourse from the trading rights of its owners. The bourse was previously owned by leading stock brokers which collapsed.
The NSE will list on the Main Investment Market Segment within 2014.
NSE staff will get 1.2% of the 81.37 million shares, currently in the hands of the 22 players, including the Ministry of finance and the CMA through its Investor Compensation Fund.
Analysts said the shift from a mutual structure to a corporate entity would allow the NSE to sell some of its shares on its own platform and seek partnership with other bourses around the world.
