Flame Tree Group is a leading regional manufacturing Group with operations in Mauritius, Kenya, Rwanda, Ethiopia, Dubai and Mozambique. It operates in cosmetics, plastics and trading, with a brand portfolio that includes Roto Tanks, Jojo Plastics, Zoe, Cerro, Alana Skin, Siora, Happy’s and Buildmart. It was founded in 1989 and now employs over 1,000 people, who are focused on delivering quality, value and innovation to improve their customer’s lives.
Flame Tree Group is listed on the Nairobi Securities Exchange (NSE). It was first listed on 6th November 2014 on the NSE’s Growth and Enterprise Market Segment (GEMS).
Market capitalisation of the Group was KES 1.41 Billion, as of 20th November 2014. (Source: Bloomberg)
Flame Tree Group conducted a private placement from 1st – 22nd October 2014, before listing its shares by introduction. This was done to meet the eligibility criteria of having a minimum of 25 shareholders and at least 15% free float to list on GEMS. This also raised institutional money for the Group to finance several important capital projects, purchase raw materials and increase working capital.
The listing of Flame Tree Group was done to provide a broader base of shareholders, added liquidity for those shareholders and raise the profile of the Group. And in the medium term, it will help the Group access more affordable finance.
Listing by introduction is a cost effective method for a mid-sized company to list. A full open offer and IPO process tends to be a more expensive and time-consuming process. And GEMS was founded on the principle of helping more mid-sized companies to list on NSE, without incurring prohibitive costs.
Since Flame Tree Group’s listing on 6th November 2014, anyone has been able to buy the shares available, as in an IPO. And the initial listing price was the same as the placing price - KES 8.
The Company’s intention was to create goodwill with incoming shareholders at the listing by offering an attractive valuation.
The Company’s valuation was conducted through typical market valuation methods, such as Discounted Cashflow Method (DCF) and multiple valuation methods.
Flame Tree Group financial year ends on 31st December.
GEMS-listed entities are required to disclose financial results bi-annually (twice a year). Flame Tree Group will be announcing its financial performance on a quarterly basis.
Details of financial performance to date can be found on the Listing Statement on the Group’s website www.flametreegroup.com.
Flame Tree Group is listed on the NSE GEMS under the Manufacturing sector. Its tradable instrument display mnemonic (TIDM) is FTGH and information on the share price can be found on www.nse.co.ke, Bloomberg and other reputable live feeds of NSE stock information.
The shares in the company can now only be bought in the secondary market (the Stock Exchange), since the shares are now listed. Shares trading in Kenya can be bought through a local stock brokerage firm, such as Faida Investment Bank. The minimum trading size for the stock is KES 1,000.
As of 6th November 2014 the number of ordinary shares issued was 162,000,000
Flame Tree Group had a private placement from 1st - 22nd October 2014 that raised KES 194 million. The company is yet to undertake any stock splits/bonus issue.
The Group intends to pay dividends to shareholders, when expansion capital is not being required. As stated in the Listing statement, FTG Holdings has a policy to pay dividends when permitted by law and subject to the consideration of the results of its operations, financial position, investment and liquidity requirements, legal reserves and minimum capital requirements.
The declaration, amount and payment of dividends is recommended, subject to the limitations set forth above, by the Board of Directors, and approved by majority vote of the Shareholders at an Annual General Meeting of the Group.
The stock is covered by Burbidge Capital and further research coverage is expected.