The AccessKenya Group has applied to the Capital Markets Authority and the Nairobi Stock Exchange (NSE) to list on the exchange this year through an initial public offering (IPO).
"We applied earlier this month, but are just waiting confirmation from the Capital Markets Authority and the NSE," says Jonathan Somen, MD of AccessKenya.
The group is a holding company of the corporate Internet service provider AccessKenya and public data network operator Blue.
The shareholders of the two companies recently formed the holding company to consolidate their shareholding base, while at the same time overseeing the expansion of both businesses.
Accelerating growth
Somen says the NSE listing forms part of the group's growth strategy. "By listing ourselves on the NSE, we will be adding value to the company, as well as accelerating business growth within the company.
"The funds raised by the IPO will be channelled directly back into the group," Somen notes. The company plans to invest in WiMax technologies, as well as build new divisions within the company to cater for the IT services on offer.
AccessKenya's main priority is to subsidise the cost of equipment of Yello, a voice over Internet Protocol service recently introduced by the company, according to Somen.
The company will also improve on the Broadband Max 2 - quadruple downlink - solution, introduced last year.
"We are also in the process of expanding our network coverage, as well as investigating new technologies that will be of benefit to Kenyans," Somen says.
Shareholder value
AccessKenya is a fully-owned Kenyan company, notes Somen. "By listing the company, other Kenyan companies and individuals will have an opportunity to become shareholders and invest in their own country."
AccessKenya completed a private placement process in 2006 and has seen growth of 75% per year over the last three years. The company also raised around $1.5 million last year through the sale of shares to top Kenyan businessmen, which was invested back into the group, notes Somen. "Our growth and recent investments have already added shareholder value to AccessKenya."
Somen says the Kenyan ICT market is booming and has positive government input, making shares in an ICT company like AccessKenya profitable.
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