Mega East African fashion retailer Deacons Kenya Limited is set to list its shares on the Nairobi Securities Exchange in July. The lifestyle brand is just waiting from approval from markets regulator Capital Markets Authority to list its shares.
“Deacons is a public company as we felt because it was Kenyans, it was right for Kenyans to own it and for shareholders to realize the worth of their share.” Said Deacons Kenya CEO Wahome Muchiri.
Deacons which has been in existence for over 54 years plans to list its shares by introduction as it has no intention of raising new capital. The company made an Initial Public Offering (IPO) in 2010 and raised Shs. 701 million, which was Shs. 99 million short of its target. Currently , Deacons which operates 10 brands in distribution agreements has its total shareholders standing at 350. Some of the brands under its umbrella include Truworths, Woolworths, Mr. Price, Identity ad Adidas.
The trendy fashion dealer says the second hand market offers a major challenge to the stores in unfair competition as the second hand clothes are brought in ‘primarily as donation from the first world’. Muchiri says loose end regulation in importation of second hand clothing has resulted to new clothing passing into the market as second hand. The new clothing on the second hand markets sell cheaper because they have not been taxed posing greater challenges to the existence of players like Deacons.
Deacons which has 31 stores in the entire East African region has projections to operate 50 stores by the end of 2014.
“We closed last year with Shs. 2.4 billion and are looking at getting to the 3 billion mark this year to enable us hit the 50 store target in Kenya.” Wahome said.