The Capital Markets Authority (CMA) on December 19th granted Kestrel Capital (East Africa) Ltd a license to operate as an investment bank. Kestrel Capital will offer advisory services on public offering of securities, corporate financial restructuring, takeovers, mergers, acquisitions and privatization, corporate financing options including issuance of equity or debt securities or loan syndication.
The bank will also offer advisory services on promoting or arranging or issuance of securities and providing investment advisory services. This follows an increase in issued and paid-up share capital from Sh100 million to Sh250 million by the previously licensed stockbroker.
In addition, Krestel has complied with all relevant statutory requirements. The approval brings the number of investment banks authorised by the Capital Markets Authority to 14. An investment bank is a non-deposit taking institution licensed by the authority to advise on offers of securities to the public or a section of the public, take-overs, mergers and acquisitions.
The bank also offers advice on corporate restructuring involving companies listed or quoted on a securities exchange, privatisation of companies through a securities exchange or underwriting of securities issued or to be issued to the public, and to engage in the business of a stockbroker or dealer.
Kestrel Capital was Kenya’s top stockbrokerage firm by earning the highest commission income in 2013, helped by its dominant share of foreign investors’ trading desk.
Annual trade data indicated that Kestrel Capital grew its market share to 20% last year up from 14.6%in 2012, as the total value of equities traded by the firm more than doubled to Sh62.3 billion.
