CMA opens window for firms to prop up the IPO share price

Nairobi Securities Exchange (NSE) on the trading floor of the Exchange building. The Nairobi Securities Exchange (NSE) incubator programme, Ibuka has struggled to revive listings on the bourse more than five years since launching in December 2018. FILE PHOTO | NMG    

By JAMES ANYANZWA More by this Author

The Capital markets Authority (CMA) has offered an opportunity for

companies going public through an initial public offering (IPO) to support their share prices for up to 30 days after listing.

Companies going public via introduction or IPO – where they raise new capital by selling shares — have so far left their stocks to trade based on supply and demand on the Nairobi Securities Exchange (NSE).

This presents the risk of a sharp share price fall soon after listing, exposing companies to negative publicity and reduced investor confidence.

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