Angelica _ann wrote:A general observation is that this Cytonn listing, if done in the next year or so, would be one of the fastest listing of a company, since its incorporation.
Listing threshhold for GEMS are really low i.e.
1. 10 million paid up capital - The price of a two bedroom apartment in middle class Nairobi Estates;
2. Operation for 1 year or more - It's almost an year since Sonko became Governor and he still has no deputy.
With such low threshhold we should be expecting over 1,000 SMEs firms to have listed by now.
What Cytonn want to do is neither remarkable nor wonder inspiring. They just want to list an SME firm which many businesses should have done by now.
Now to my personal opinion. Dande and Co. are young sharp minds. They plans and ambitions are bigger than the Cytonn container. In other words there is alot of potential in Cytonn. It is easier to sell potential to VCs than to Wanjiku.
This is obvious from the number of companies that list with lofty valuations but are brought back to reality by Mr Market. A good example is Home Afrika. Valued at 12 on listing but 5 years later, despite growing their balance sheet, the market values them at sub 1 bob. They only raised 1/3 of a 900m bond issue. Other examples abound like Transcentury and EA Cables.
Consequently IMO listing too soon will kill the company. They better grow the company with Smart Money and exit later because Wanjiku does not believe in dreams.
Life is short. Live passionately.