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THE ACCESS KENYA IPO |
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The Group will be the only Kenyan IT / Tech company listed on the Nairobi Stock Exchange. It received applications from the 19th of April up to the 30th of April.
Speaking after the EGM, the Group's Managing Director, Mr. 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 un-audited 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 Mr. Somen.
The AccessKenya IPO will offer 80 million shares at a price of 10 shillings per share.
AccessKenya Group, the holding company which owns AccessKenya, Kenya's leading corporate ISP, and Blue, one of Kenya's largest Public Data Network Operators also recently reported that in the five years between 2002 and 2006, the revenues of the Group increased by more than 10 times to 578 million shillings. From 2004 - 2006, growth in revenues has been in excess of 75% per annum.
The growth in profits is even more impressive - during the three year period 2004 - 2006 "adjusted" profits after tax have grown by 90% per year to a level of 94 million shillings. The "adjusted" profit figure adjusts directors and consulting fees in previous years when the business was purely family owned to the market levels at which these fees have been paid following the private placement last year.
Full details of the company's financial results and projections can be found in their Prospectus which will be available from the Company's head office or from Authorized Selling Agents on the day of the offer.
The AccessKenya Group currently has over 1400 corporate leased lines across Kenya, employs in excess of 140 people and has offices in Nairobi and Mombasa. In Mombasa the Group operates three base stations around Mombasa giving coverage of up to 20 kilometers from each location on Mombasa Island, Nyali and Mazeras. During 2006, AccessKenya received three awards at the COYA awards including Runner Up Company of the Year SME Sector. The Group's key products include Yello, GO, Broadband Max and Broadband Max 2. Companies within the AccessKenya Group currently hold four licenses from CCK including DCNO, ISP, PDNO, and Local Loop Operator licenses. ___________________________________________________________