This archive report was first published on 9 August 2019.
On August 9, 2019, Bangi Inc, a US-based company, announced its intention to list on the Nairobi Stock Exchange (NSE). The move aims to increase the company's exposure to Africa's investment community and provide investors with a new platform to purchase its stocks through mobile platforms like M-Pesa and Airtel money.
The company's board has approved an initiative to cross-list its common stock as depositary receipts on the NSE, leveraging the Swahili translation of its name, 'Bangi', which means 'marijuana' in Swahili. If granted permission, Bangi Inc will gain access to the East African Community's vast population through the Capital Market Authority (CMA), allowing citizens of the region's six countries to invest in the company.
According to Dr. Neil Parsan, the company's CEO, listing in Kenya's capital market will enable Bangi to access an untapped market valued in hundreds of billions of dollars. The cross-listing is expected to expand the company's shareholder base, increase its liquidity, and provide a platform for Africa's retail and institutional investors to invest in the company's growth.
However, the move raises questions about the company's prospects in a market where marijuana is illegal. The NSE has yet to respond to the application.
