ACCESSKENYA’S IPO RECEIVES APPROVAL FROM NSE
AccessKenya Group shareholders approved the Group’s IPO plans at an Extraordinary General Meeting last week. The AccessKenya Group has been given approval to start receiving applications for shares in its Initial Public Offering on 19th of April up to the 30th of April. The Group will be the only Kenyan IT / Tech company listed on the Nairobi Stock Exchange.
Speaking after the EGM, the Group’s Managing Director, Jonathan Somen said that the company offered great value for potential shareholders. “Accesskenya has seen an increase in revenue of more than 75% per annum over the last three years and profit has grown by almost 90% per year from 2004 to a current level of 94 million shillings”.
Somen continued: “We have also included in our prospectus an unaudited review of our results for January and February of this year which demonstrate that the business is well on track to deliver at least a 50% improvement in profitability this year on the back of further growth. We have had a tremendous first quarter, adding over 200 new leased lines to the 1,250 with which we closed 2006. The customer growth was particularly driven by sales of our new “Broadband Max 2” – quadruple downlink leased line solution - and “Go” – our new entry level solution for people buying leased lines for the first time. These results should give all our potential investors comfort of the tremendous and ongoing growth potential of this business.”
The Group currently holds the lead position in the market for the highest number of corporate leased line connections. The Group’s growth has been driven by significant increases in customer numbers over the last five years, and according to Africa Analysis, a South African market research company .AccessKenya has a 32% market share, giving the company a clear lead over its closest competitor who stands at 14%.
The ICT market is also expected to grow rapidly in the next few years with Africa Analysis also predicting a 600% increase predicted for Kenya on the take up of broadband data services between 2006 and 2011.
“The combination of our excellent financial performance, leading market position and the huge potential for growth in the ICT market, will make the Accesskenya IPO very attractive to Kenyan shareholders”, said Somen. The Accesskenya IPO will offer 80 million shares at a price of 10 shillings per share.