KENYA – Caracal Gold Plc, a gold mining company, based in the UK, has picked Faida Investment Bank as its financial adviser and joint broker as it plans to do a Kshs 2 Billion (US$18.4 million) listing at the Nairobi Securities Exchange (NSE).
Caracal Gold Plc listing at the Nairobi Bourse will make it only the second Company to have a dual listing at both the NSE and London Stock Exchange (LSE).
The Economic Partnership Agreement (EPA) that was ratified between Kenya and the UK in May 2021 to boost trade between the two countries worth Kshs 200 billion (US$1.84 billion) a year indicates the importance of the NSE listing to Caracal Gold.
The Capital Markets Authority (CMA) and the NSE are expected to approve the listing of Caracal Gold with its shares to commence trading on the NSE in September 2021.
Caracal Gold Plc’s business plan and corporate strategy in East Africa will target increasing Gold production at Kilimapesa Gold Mining and Processing Operations in Kenya and acquiring other complementary and strategically located gold mine and development projects.
Caracal Gold Plc will be the first gold miner to be listed at the Nairobi bourse, providing an ideal opportunity for investors to participate in Kenya’s nascent mining sector.
The UK mining firm intends to use its enhanced international image to link up with UK, Kenyan and other European-based funds, institutions and investors.
Faida will team up with UK-based VSA Capital Limited- also appointed as a corporate broker and financial adviser to Caracal Gold Plc.
Faida and VSA will advise the mining firm with listing at the NSE’s Growth Enterprise Market Segment (GEMS) via introduction.
Geoffrey Odundo, Chief Executive Officer of the Nairobi Securities Exchange, said the listing of Caracal Gold Plc on the GEMS segment offers the mining firm access to world-class infrastructure and access to both international and local investors.
According to Andrew Kamau, Kenya’s Principal Secretary Ministry of Petroleum and Mines, Kenya’s mining sector has vast investment opportunities.
“We hope listing of Caracal Gold Plc will demonstrate to the international investment community the attractiveness of Kenya’s sector,” said Kamau.
“The listing of Caracal Gold Plc on the GEMS segment offers the mining firm access to world-class infrastructure and access to both international and local investors”
Geoffrey Odundo – CEO, Nairobi Securities Exchange
According to the Gold Mining Company’s CEO Charles Tatnall, Papillon CEO, the proposed listed at the Nairobi bourse was set out in the prospectus published on 20 July 2021.
“It is very pleasing to have now appointed Faida Investment Bank Limited as our financial adviser and joint broker to now complete this listing in September, as well as the appointment of VSA Capital as our advisor and joint corporate broker,” said Tatnall.
Caracal Gold management said the company’s growth strategy is to establish a strategic portfolio of East African gold-producing assets and a strong pipeline of development and exploration projects.
“The gold mining sector in Kenya offers many opportunities and we hope that through our listing, we will provide Kenyan investors and institutions and other key stakeholders in the region with the opportunity to share in our vision of building a very successful, profitable and responsible gold mining company, based here in Nairobi,” said Tatnall.
Caracal Gold plc’s ordinary shares have been readmitted to the standard listing segment of the Official List of the FCA and trade on the Main Market for listed securities of the London Stock Exchange Plc.
Meanwhile, Mayflower Gold, a Kenyan Mining Company, has also announced plans to dual list its shares on both the NSE and LSE in a deal worth US$19.8 million.
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