The stock of the company, which was listed by introduction, slid to 52.50 shillings as of the 3 p.m. close in the capital, Nairobi, compared with a 57 shilling close yesterday, when TransCentury surged 14 percent from the initial public offering price of 50 shillings each.
“There is some illiquidity before supply kicks in,” Victor Odendo, an investment manager at Nairobi-based CIC Asset Management Ltd., said in a phone interview today. “There is also a perception that when the shares were trading over the counter, the market could not place a fair value.”
The listing price gave TransCentury, which is investing in construction and electricity companies, a market value of 13.4 billion shillings ($149 million), Chief Executive Officer Gachao Kiuna told reporters July 5. The company will also raise $75 million through the sale of Eurobonds, he told reporters. TransCentury’s revenue grew last year by 25 percent, Kiuna said April 1.
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