Over The Counter (OTC) trading is share transactions for companies not listed at the Nairobi Securities Exchange. The scramble for OTC shares is because if and/or when these unlisted companies finally go public i.e. list on the Nairobi Securities Exchange, their founder shares have to be split to accommodate the public demand and supply thresholds; an exercise which is normally undertaken by experts. For this accommodation to happen, the existing founder members’ shares (in this case the OTC shares) have to be split so that the public can have a slice of the company.
Successful OTC trades usually make more returns for the investors upon listing, and as such we usually advice our clients on which OTC shares are promising and more likely to reward investors with more returns. We also refer clients to specific clearing houses dealing with the OTC shares for specific companies and upon agreement we facilitate the exercise for our clients as per agreed terms.