Capital Markets Authority (CMA) has granted stock brokerage firm, Kestrel Capital a license to operate as an investment bank, after it complied with the regulators capital share requirements.
Over the last year, it’s paid up share capital grew from Sh 100 million to Sh 250 million buoyed by a big number of foreign investors on its trading desk-the group of investors helped drive up huge turnover volumes.
“In addition to increasing share capital, the newly licensed investment bank has been in compliance with all relevant statutory requirements,” said CMA in a statement.
Last year the company grew its market share to 20 percent from 14.6 percent in 2012, with value of equities traded doubling to Sh 62.3 billion.
The firm will however not take deposits but will engage in advisory services on offers of securities, take-overs, mergers, acquisitions and corporate restructuring involving companies listed or quoted on a securities exchange.
It will also offer expert direction on privatization, corporate financing options including issuance of equity or debt securities or loan syndication, promoting or arranging or issuance of securities and providing investment advisory services.
The approval brings the number of Investment Banks authorized by the Capital Markets Authority to 14.