Homeboyz Entertainment Plc is expected to sell 30 percent of its stake to a strategic investor, the Nairobi Securities Exchange (NSE) has disclosed.
The company shares began trading at the NSE last week after a one-year exemption it was granted against the backdrop of the challenging operating environment brought about by Covid-19.
“Due to challenging macroeconomic conditions resulting from the Covid-19 pandemic, Homeboyz Entertainment received exemptions from trading for one year. These exemptions allowed the company to focus on engaging with strategic investors. In late 2022, the company commenced discussions with a strategic investor interested in acquiring a 30 percent stake in the business,” the NSE said in a statement.
During the week, the counter recorded activity on two trading days and moved shares worth Sh44.2 million at Sh4.66 each, the same as the listing price.
Homeboyz listed by introduction on the growth enterprise market segment of the bourse in December 2020, floating 63.2 million shares as it became the first entertainment company in the country to enter the stock market.
The company listed three shareholders in its listing statement including Michael Agwingi Rabar who held 56.35 percent stake or 35.612 million shares, Rose Nyaguthii Maina, 43.62 percent or 27.568 million shares.
John Juma Obonyo Rabar meanwhile held 20,000 shares representing a stake of 0.03 percent.
Homeboyz sought to access additional and a broader range of capital options to finance growth through the 2020 listing. The move to seek a strategic investor suggests the firm may not have achieved its capital raising target through listing.
The company directors include Humphrey Wattanga who serves as chairman, Mike Rabar, founder and CEO, Stephen Gugu, Rose Rabar, John Rabar and Joe Otin.
Homeboyz was incorporated as a private limited company on March 15, 2001 and was converted to a public limited company in September 2020.
The firm had forecast to rise from a loss position in 2020 to a profit within the first year of operations and had projected a turnover of Sh492.4 million in December 2023 from a forecast Sh99.4 million in 2020.
The projections were anchored in securing major contracts, including deals with the UN Habitat, UNFPA, Kenya Rugby League, Safari Rally, E-Sports Federation of Kenya and the Magical Kenya Open.
Homeboyz begun as a deejaying unit called Homeboyz DJs in 1992, playing at small house parties and weddings. It is now sizable with various business segments including events management, sound tracks, sound equipment hire, public relations and DJ agency.
