British gold mining firm Caracal Gold will list in Kenya’s capital market segment for Small and Medium-Sized Companies before July.
In a company update, the firm said it will list on the Nairobi Securities Exchange (NSE) via introduction at the Growth Enterprise Market Segment (‘GEMS’) in the second quarter of this year. Caracal Gold formerly Papillon which owns Kilimapesa gold mine in Lolgorian, Trans Mara, Narok County wants to dual list at the London and Nairobi exchanges to fund the growth of its operations.
The company announced the dual listing worth Sh2.1 billion during President Uhuru Kenyatta’s three-day London tour last year but did not give details of the dates it will offer shares to the public.
Growth Enterprise Market Segment
“The Company intends to list on the NSE via an introduction of the Company’s shares to the Growth Enterprise Market Segment (GEMS) of the NSE. The Company, with its advisers Faida and VSA, has made progress with the pre-listing requirements, with the only pending item being the updating of the latest consolidated accounts for Caracal Gold PLC, and the NSE Listing is expected to complete in the second quarter of 2022,” said Chief Executive Officer of Caracal Gold Plc, Robbie McCrae.
The company was renamed Caracal Gold following a reverse takeover deal between Mayflower Gold and Papillon. The gold miner has also been growing its local portfolio including the purchase of Kilimapesa Gold from London-listed gold miner Goldplat in January last year.
The gold miner will also buy a 70% stake in a joint venture interest in Congo Gold SARL for interests in the Kakamoeka Gold Project Caracal said they plan on pitching their counter to high net worth individuals and asset managers after listing in Nairobi. The company recently appointed former Mining Minister and Tanzania ambassador, Dan Kazungu to the company board.
“Following the NSE Listing, the Company plans to host a breakfast introduction for high-net-worth individuals and asset managers to Caracal Gold in Nairobi as well as a planned visit to tour the Kilimapesa mining site in Lolgorian,” Mr McCrae said.
The gold miner will be the third company to cross-list in Nairobi and London following the footsteps of Atlas Development & Support Services and Kakuzi. Atlas which also cross-listed in the gems section in 2014 collapsed after failure to grow local presence and expand into Ethiopia and was finally struck off the NSE board.
The gems section has not recorded successes since it was set up with a target of achieving 3-4 GEMS listing annually. The Gems section that was expected to list 19 firms by 2017 and 39 listings by 2023 has only attracted six firms since it was launched in 2013.
The firms still operating under gems including Nairobi Business Ventures, HomeBoys, Home Afrika, Flame Tree, and Kurwitu Ventures are all struggling with poor performance and discounted stock prices.