NBV Market Valuation Settled at Kshs6B

The market valuation of Nairobi Business Ventures (NBV) has settled at Sh6.7 billion, three months after the completion of its reverse takeover by Delta International FZE.

Delta International’s takeover has come with an increase in NBV’s issued shares at the Nairobi Securities Exchange (NSE)  to 1.35 billion from 38.6 million prior to the buyout.

This was further combined with a rise in share price and has caused a huge jump in market capitalization for the firm.

NBV Share Trade

Before the announcement of the takeover, the NBV share was trading at Sh0.71, giving the firm a valuation of Sh27.4 million.

The entry of an investor promising to bring in income-bearing assets excited the market and caused a jump in share price to a new all-time high of Sh12.80 in July last year.

This marked one of the biggest short-term rallies on the NSE.

The reduced liquidity of the stock due to the large majority stake held by Delta International has also helped protect the valuation of the share from erosion.

This is despite the big increase in issued shares.

NBV New Chief

Current NBV chief executive Haresh Soni took control of the firm in November 2020.

This is when he paid Sh83 million for a stake of 84.32 percent through his investment vehicle Delta International.

Mr. Soni has since raised this to 94.4 percent after NBV issued him new shares to pay for the acquisition of four companies worth a total of Sh3.4 billion and which are controlled by him and his partners.