May 30 (Bloomberg) -- Longhorn Kenya Ltd., the educational-materials publisher, jumped 14 percent after its debut on the Nairobi Securities Exchange.
The stock rose 15 percent to 16.15 shillings by the close of trading. The company listed 58.5 million shares today at a price of 14 shillings.
“It was optimally priced at 14 shillings because it has been trading over the counter at 100 shillings; it was split into five which means the listing price should actually have been 20 shillings,” Irungu Nyakera, managing director of Nairobi-based NIC Capital Ltd., said in a phone interview today.
Full-year profit surged more than fivefold to 136.3 million shillings ($1.59 million), the company said May 28. Sales jumped to 1.1 billion shillings in the 12 months through June 2011 from 526.9 million shillings a year earlier.
Longhorn Kenya, which has operations in Tanzania and Uganda, began selling educational books to Malawi earlier this year, Chairman Francis Nyammo said during the listing, the first on the Kenyan market this year.
“The company’s growth will be driven by diversification of product and market,” Nyammo said.
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