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Shares in the Nairobi-based shoe distributor, Nairobi Business Ventures (NBV), have taken an upward turn as the company staged the largest-ever short-term rally on the Nairobi Stock Exchange (NSE).
Established in 2012, NBV is a leather shoe and accessory retailer. Shares in the company skyrocketed after Kenyan tycoon Haresh Soni’s Dubai-based Delta International acquired an 84-percent stake in the business in October 2021.
Delta purchased the stake for Ksh.83 million ($764,627).
NBV’s recent growth has triggered hundreds of millions of shillings in earnings for its shareholders, Business Daily reported.
During the buyout, the shoe seller underscored its intention to diversify into cement manufacturing with the proceeds.
The announcement sent the company’s stock roaring from a low of Ksh0.63 ($0.0058) on Oct. 13, 2020 to a record high of Ksh13.80 ($0.13) on July 6. This pegged its market value at Ksh6.7 billion ($61,722). Its stock value has risen nearly 22 times in nine months.
Several weeks ago, the company sought shareholder approval to establish a Ksh15-billion ($138.19 million) cement manufacturing plant in Machakos, barely a month after announcing plans to diversify into new sectors to grow revenue.
As of July 26, its shares were valued at Ksh4.42 billion ($40.7 million). They have gained 1,536 percent over the past year, making it the best-performing company on the NSE.
