The Alternative Investment Market Segment (AIMS): Fostering Mid-Cap Growth and Development

The Alternative Investment Market Segment (AIMS) on the Nairobi Securities Exchange (NSE) plays a pivotal role in providing a tailored platform for mid-cap companies in Kenya and the broader region.

This segment is strategically designed to assist companies in accessing capital, offering a public stage to expedite their growth and development.

In this article, we explore the significance of AIMS and the specific requirements that guide the listing of companies on this dynamic market segment.

Companies on AIMS:

AIMS proudly hosts a diverse array of mid-cap companies, each contributing uniquely to the economic landscape. Some of the prominent entities listed on AIMS include:

  1. Eaagands LTD
  2. Kapcharua Tea Kenya PLC
  3. The Limuru Tea Co. Plc Ord 20.00
  4. Williamson Tea Kenya Plc
  5. Deacons East Africa plc
  6. Express Kenya plc
  7. Longhorn Publishers plc
  8. Trans Century plc
  9. Kenya Orchards Ltd

Requirements to List on the Alternative Investment Market Segment:

  • Incorporation Status:
    • Issuer to be limited by shares and registered under the Companies Act.
  • Share Capital:
    • Shall have a minimum authorized, issued, and fully paid-up ordinary share capital of Kshs. 20m. The firm must be in existence in the same line of business for a minimum of two years and demonstrate good growth potential.
  • Net Assets:
    • Net assets immediately before the public offering or listing of shares should not be less than 20m.
  • Share Transferability:
    • Shares to be listed shall be freely transferable and not subject to any restrictions on marketability or any preemptive rights.
  • Availability and Reliability of Financial Records:
    • Have audited financial records, for the period ending on a date not more than four months prior, for the issuer not listed on the exchange and six months for issuers listed.
  • Competence of Directors and Management:
    • Directors and Management must be ethical, not bankrupt, have no criminal proceedings, and possess suitable senior management with relevant experience for at least one year prior. Must not be in breach with any loan covenant, particularly on debt capacity.
  • Dividend Policy:
    • Not Applicable.
  • Track Record, Profitability, and Future Prospects:
    • Not Applicable.
  • Working Capital and Solvency:
    • Issuer shall not be insolvent; they must have adequate working capital.
  • Share and Ownership Structure:
    • Following the public share offering or immediately prior to listing in the case of an introduction, at least 20% of the shares must be held by not less than one hundred shareholders, excluding employees of the issuer or family members of the controlling shareholders.
  • Certificate of Comfort:
    • In case of listing outside the Kenyan jurisdiction, obtain a certificate of no objection from the foreign securities exchange and regulator.

Conclusion:

The Alternative Investment Market Segment stands as a vibrant and essential component of the Nairobi Securities Exchange. By providing a tailored space for mid-cap companies, AIMS plays a crucial role in fostering economic growth, development, and diversity.

As the list of companies on AIMS continues to expand, it exemplifies the market’s commitment to nurturing businesses, encouraging investment, and contributing to the overall resilience and dynamism of the regional economy.