After a long five-year drought without a single new listing, the Nairobi Securities Exchange (NSE) is finally set to welcome a new entrant: Shri Krishana Overseas Ltd (SKOL), a company specializing in the manufacture of packaging materials and footwear.
Founded in 2009 in Nairobi by Nirmal Chaudhry and Dr. Sonvir Singh, SKOL has grown into a key player in a sector undergoing major transformation, driven by rising demand for more sustainable, eco-friendly, and innovative solutions. Its strong local presence and ability to deliver customized products have helped the company carve out a niche for itself, all while maintaining the scale of a small to mid-sized enterprise.
SKOL has received regulatory approval to list 50.5 million shares on the NSE, priced at 5.90 Kenyan shillings per share — for a total valuation of 298 million shillings. This will be a direct listing, a method known as "listing by introduction", which does not involve raising new capital but rather aims to provide liquidity to existing shareholders and boost the company’s visibility. This route is often chosen by firms with a broad shareholder base or those that have previously raised funds through private placements. In SKOL’s case, the company meets the minimum public float requirements set by the regulator, allowing it to bypass the complexities of a traditional IPO.
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The company will be listed on the SME segment of the NSE — formerly known as the Growth Enterprise Market Segment (GEMS) — which offers a streamlined path for growing businesses seeking to go public. This will mark the first new listing on the NSE since 2020, and the 15th listing by introduction since 2006.
This development comes at a time when Kenya's political leadership is once again voicing ambitions to revive the local capital markets. During a recent visit to London, President William Ruto reaffirmed his government’s commitment to invigorating the NSE, announcing that Kenya Pipeline Company (KPC) would be listed by the end of the year through an IPO. The announcement has renewed hopes, although similar promises made in 2022 — including plans to list 6 to 10 public enterprises and several private companies such as Credit Bank and Bio Foods — have yet to materialize. In June 2024, the government did approve a divestment plan for minority stakes in several state-owned companies, but implementation has been slow. If completed, the IPO of KPC would be the first major listing in over a decade. Whether these new announcements signal a real shift or simply add to a growing list of unfulfilled promises remains to be seen.
