Atlas Logistics, a London-listed oil and mining services provider, is set to list on the Nairobi Securities Exchange (NSE)’s Growth and Enterprise Market Segment (GEMS), as it seeks localize its operations and services.
“The listing itself is not for purposes of raising additional money, but rather to open up the company to Kenyan ownership,” Business Daily quoted Atlas Logistics chief executive officer, Carl Esprey, as saying.
Esprey explained that Atlas is not a London company with a Kenyan subsidiary, but rather a local firm headquartered in Nairobi. The oil, gas and mining servicing firm therefore intends to use the listing to make Kenyans have a sense of belonging. At least two Kenyans will be appointed to its board once it gets on the NSE.
According to Esprey, the company went to London to raise a capital of $30 million because it had no other choice. This he said was because it is very hard for startups in Kenya to get funding.
Atlas’s private placement is ongoing. The listing of 40 million shares, equivalent to 10 percent of the company’s share capital will then follow. Esprey however expects market forces to determine what stake in the company Kenyans would eventually hold.
The company listed on the AIMS segment of the London Stock Exchange (LSE). It will become become the first company ever to cross-list on both bourses once this process is completed by the next month.
Atlas intends to expand to other parts of East Africa following the Kenyan listing.
“We knew we could only list in Kenya upon delivering a profitable company. The idea was to raise money, find a target, and use that as a starting point for a regional support services function,” Esprey said.
The East African expansion will be done through the acquisition of existing companies. The company will also bid for jobs in mining and geothermal development, as well as others sectors of interest, in Kenya, Tanzania, Ethiopia, Djibouti and Mozambique.
Atlas is already providing civil engineering services to Kenya’s Geothermal Development Company (GDC). It also recently announced it has been awarded a support services contract by an international oil company in Mozambique.
