Deacons set to list on NSE

Fashion and lifestyle retailer, Deacons (East Africa) is set to list on the Nairobi Securities Exchange (NSE) this august following regulatory approval.

The clothing retailer will list 123, 558,228 shares at KSh 15 each, giving it a valuation of KSh 1.85 billion.

Deacons has been trading its shares over the counter since 2010, after it floated a public offer which raised Sh700 million to fund expansion.

The retail chain plans to increase its regional store from its current 33 stores to 60 by the year 2020.

Deacons Chairman, Peter Gichuru , said that the move is a response to the region’s growing middle class that is increasingly demands vibrant and fresh brands that are of international standards, offered through convenient locations and supported by online platforms.

“Listing will unlock value for shareholders and will give new investors the chance to participate in the region’s largest fashion and lifestyle company that has a strong bouquet of leading fashion brands,” He added

Deacons opened its first store in 1958 when it was the franchise holder for the Marks & Spencer brand and has since been operating in Kenya, Rwanda, .

Over the last five decades, the clothing retailer has been acquiring franchise rights for several international brands to fuel its expansion.

Deacons runs, Woolworths, Mr Price, Truworths, Sheet Street, Identity, Angelo and 4U2 with a presence in Kenya, Uganda, Mauritius and Rwanda.

“Going forward we will execute this philosophy through adding fresh brands, entering into franchise agreements and building a successful online presence,” Gichuru said.

Deacons posted a net profit of Sh113.8 million in 2015, driven by a 23 percent jump in revenues which stood at Sh2.4 billion.