Deacons of Kenya Says Share Sale Falls Short of Target

Deacons Kenya Ltd., a Kenyan clothing retailer, sold 701 million shillings ($8.7 million) of stock, short of its 800 million shillings target to fund an expansion in its home market and neighboring territories.

The company offered 12.8 million shares, or 39.5 percent of its stock, to the public at 62.50 shillings each from Nov. 17 to Nov. 30, Deacons said in a statement published today in the Nairobi-based Standard newspaper.

“We will expand the store footprint within Kenya and the region, particularly Uganda and Rwanda,” Chief Executive Officer Muchiri Wahome said on Nov. 17. The company has 23 outlets in Kenya, Uganda and Tanzania, he said.

Deacons has distribution agreements with South African retailers including Mr Price Group Ltd. (MPC), Truworths International Ltd., Woolworths Holdings Ltd., and with German sporting-goods maker Adidas AG. Its own brands include 4U2, Angelo and Life Fitness, according to the statement. The company began operations in 1958 with a distribution agreement for Marks & Spencer Group Plc in East Africa for 22 years.

The company may begin trading it shares on the Nairobi Stock Exchange (NSEASI) before the end of next year, Wahome said.

A private placement by Deacons in 2006, at an offer price of 30 shillings a share, raised 118 million shillings. The two biggest shareholders in the company are Swedfund International AB, with a stake of 19.45 percent, and Pinpoint Investment Ltd., with a holding of 12.06 percent.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.

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