Flame Tree Group managing director Heril Bangera during an interview
with Business Daily at his industrial area office, Nairobi, on July 4,
2014. Makers of Zoe brand cosmetics and Roto tanks, Flame Tree Group, is
to list on the Nairobi Securities Exchange (NSE) on November 6, 2014.
PHOTO | SALATON NJAU |
NATION MEDIA GROUP
Makers of Zoe brand cosmetics and Roto tanks, Flame Tree Group,
is to list on the Nairobi Securities Exchange (NSE) on Thursday.
The
family-owned firm will list 190 million shares at Sh8 each on the NSE’s
Growth Enterprise Market Segment (GEMS) on November 6.
This follows a successful private share sale that attained a 158 per cent subscription rate, raising Sh194 million.
In
the private share sale, the firm’s founder and CEO, Mr Heril Bangera,
disposed of 15 per cent stake in an oversubscribed private placement in
which 24.3 million shares were sold to local institutional investors.
Burbridge Capital was the lead transaction advisor and is also the nominated advisor on the listing.
Flame
Tree will be the second entity to list on the GEMS, 15 months after
property developer, Home Afrika, listed in July last year.
Mr Bangera said the fresh capital will be used to step up production.
“Within
the fast moving consumer goods segment, we have a 4 per cent market
share with Zoe brand and we believe there is a lot of room for growth.
The private placement has mobilised institutional funds to finance
projects, purchase raw materials and increase working capital,” Mr
Bangera said last week.
In 2013, the firm registered Sh1.6 billion turnover and anticipates to double it in five years.
Mr Bangera established Flame Tree 25 years ago with a focus on making plastic tanks.
The
firm has since grown beyond making tanks and has a number of
wholly-owned subsidiaries in Mauritius, Kenya, Rwanda, Ethiopia and
Mozambique.
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