|
|
Managers:
- Mr. John P. Munge, Chairman
- Mr. Arthur Namu, Chief Executive
Contact
Head Office:
Postal address: P.O. Box 14686, Nairobi, Kenya.
Visiting address: 14th floor, Nation Centre, Kimathi Street, Nairobi
Tel: + 254 (2) 227300
Fax: + 254 (2) 213024
E-mail: shahmunge@iconnect.co.ke
Mombasa Office:
Postal Address:P.O. Box 42670, Kenya
Visiting Address:1st Floor, Palli House, Nyerere Avenue, Mombasa
Tel: +254 (011) 226408
Fax: +254 (011) 313908
|
 COMPANY PROFILE |
| INTRODUCTION |
Shah Munge & Partners Limited (SMPL) is a stock brokerage company and a founding member of the Nairobi Stock Exchange (NSE).
The Company was licensed in July 1969 as Chandulal Shah Limited. Twenty years later, John Munge joined the firm as a partner and Managing Director from the banking sector. As a result, the Company changed its name to Shah, Munge & Partners Ltd. in March 1991.
| SERVICES |
The company aims to be an effective player and pacesetter in capital markets activities in Kenya and the East African region. SMPL is dedicated towards providing its clients with high quality services. As a result of this focus SMPL has become the leading brokerage house at the NSE (Nairobi Stock Exchange). The Company has a team of 34 staff, with 30 employees in the Head Office in Nairobi and 4 at the fully-fledged branch office in Mombasa.
| ACTIVITIES |
Over the last seven years, the company has played a leading role in capital raising activities of key corporate bodies in the country. The following is a summary of its core activities:
 Equity and Fixed Income Securities |
Buying and selling of shares
Advising on equity and debt placements and listings
Marketing new issues including investor briefings and presentations
Post listing Management of new issues either public or private
Discretionary Portfolio Management
Investment Advisory Services
Equity research for private client circulation
| Corporate Finance and Advisory Services |
Advising and structuring mergers, acquisitions and take-overs
Structuring equity and debt proposals for corporate bodies
Providing financial advisory services including
negotiating with potential lenders.
|
Advising on joint ventures and partnerships
Undertaking financial due diligence in companies for major investors
Currently, Shah Munge & Partners has approximately 23% of the equity market share and approximately 36% of the debt and fixed income securities market.
| MARKET SHARE |
see table
| CAPITAL MARKETS PROJECTS |
Shah Munge & Partners has been advisor-sole/ lead stockbrokers to the following recent capital market issues:
see table
So far the largest and most acclaimed issue ever handled in Kenya was the pirvatization of Kenya Airways via IPO in which SMPL was the lead broker. As a result, the Privatization Project Team received the World Bank Group Award for excellence.
| CLIENT PROFILE |
Locally, SMPL deals with a mix of corporate and institutional investors (most major banks and insurance companies), high net worth individuals and retail clients. Internationally, since the opening of the NSE in Jan. 1995, SMPL has established relationships with international foreign fund managers, global emerging market investors, broking firms, corporate finance specialists, bankers and other professionals.
| EMERGING AREAS OF OPERATION |
In April 1997 the Capital Markets Authority put forth a revised set of guidelines for corporate bonds and commercial paper effectively increasing accessibility to a significantly broadened range of potential issuers and investors.
SMPL has established a new department devoted exclusively to the development, placement, and trade of debt instruments. In 1997, SMPL captured a significant 70% Market Share on Debt Instruments Placements and Trading.
SMPL is also committing more resources to Corporate Finance and Advisory services. |
| MARKET SHARE |
Trading Year
|
NSE Turnover (Kenya Shillings)
|
SMPL Turnover (Kenya Shillings)
|
SMPL % of NSE
|
Total number of brokers in Kenya |
| 1995 |
3.34 billion |
0.91 billion |
27.4 % |
6 |
| 1996 |
3.96 bill |
0.77 bill |
19.5 % |
20 |
| 1997 |
6.15 bill |
1.45 bill |
23.5 % |
20 |
| 1998 |
4.64 bill |
1.11 bill |
24.46 % |
20 |
|
| CAPITAL MARKETS PROJECTS |
| Offer date |
Company |
Offer type |
Offer size ( in Kenya Shillings)
|
Broker status |
Success Rate % |
| Nov 92 |
Crown Berger |
IPO |
138 mill |
Lead |
104 |
| Mar 93 |
Marshall´s |
RI-Pr |
250 mill |
Sole |
100 |
| Sept 94 |
National Industrial Credit |
IPO |
936 mill |
Sole |
77 |
| Oct 94 |
Firestone (EA) Ltd. |
IPO |
1.42 bill |
Lead |
101 |
| May 95 |
Rea Vipingo Plantations |
PP |
102 mill |
Lead |
100 |
| Jan 96 |
Kenya Breweries |
SDI |
1.5 mill |
Sole |
100 |
| Feb 96 |
Rea Vipingo Plantations |
IPO |
84 mill |
Lead |
216 |
| Mar 96 |
E.African Portland Cement |
RI-Up |
1.08 bill |
Lead |
100 |
| Mar 96 |
Kenya Airways |
IPO |
2.60 bill |
Lead |
182 |
| Nov 96 |
E.A. Development Bank |
IPO-Bond |
820 mill |
Lole |
82 |
| Feb 97 |
Regent U.A. Africa Fund |
IPO |
10.4 mill USD |
Lead |
- |
| Apr 97 |
Tourism Promotion Services |
IPO |
167.6 mill |
CO |
428 |
| Jul 97 |
Athi River Mining Ltd. |
IPO |
281 mill |
CO |
44 |
| Jul 98 |
Crown Berger Kenya Ltd. |
Take-over |
182 mill |
Sole |
100 |
| Mar 99 |
HFCK |
Offer for sale |
420 mill |
Lead |
90 |
IPO - Initial Public Offer RI-Pr - Private Rights Issue SDI - Scrip Dividend
PP - Private Placement RI-Up - Public Rights Issue |
|
© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Kenya published in Forbes Global Magazine.
November 29th 1999 Issue.
Developed by AgenciaE.Tv |
|
|
|
| |
|
|
|
|
