NSE converts into public limited company

Business Daily Kenya:  Private companies or individuals interested in owning shares at the Nairobi Securities Exchange (NSE) can now acquir...

Business Daily Kenya: 

Cash. Photo/File

Private companies or individuals interested in owning shares at the Nairobi Securities Exchange (NSE) can now acquire shares at the bourse after the shareholders approved the change of name from Limited to the Public Limited Company (PLC).

This is in compliance with Section 54 of the Company Act 2015. Speaking during the 63rd Annual General Meeting (AGM) last week, the shareholders unanimously approved the creation of an Employee Share Ownership Plan (ESOP) Unit Trust to be called the ‘NSE ESOP Unit Trust.

It also approved the company to allot 12.9 million ordinary shares constituting five per cent of the total share to be sold at Sh4 per share in the company to the NSE ESOP unit trust as and on when and on such terms as the board may determine, provided that such ordinary shares shall rank at the same rate with existing issued ordinary shares, such authorisation being valid for five years from the date of this resolution.

What this means is that any private firm or individual can now acquire stocks at the NSE during an Initial Public Offering (IPO) or through trades on the stock market.

“PLC is the legal designation of a limited liability company, which has offered shares to the general public,” John Kirimi director, Sterling Capital, explains.

Kirimi says that a PLC’s stock is offered to the general public and can be acquired by anyone, either privately, during an initial public offering, or through trades on the stock market.

Mandatory use

He explains that the mandatory use of the PLC abbreviation after the name of the company serves to inform investors or anyone dealing with the company that the company is public and is fairly large.

Nairobi Stock Exchange was established as a voluntary association of stockbrokers in the European community registered under the Societies Act in British Kenya, in 1954.

The post NSE converts into public limited company appeared first on Mediamax Network Limited.

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