The stock value of the Nairobi Securities Exchange (NSE) has risen by nearly 150% from 9.50 Kenyan shillings (KSH) ($0.107) at the Initial Public Offer (IPO) to KSH 23.50 ($0.265), after the significantly oversubscribed event witnessed over seven times the expected demand.

The NSE had been expecting to issue 66 million new shares at the price of KSH 9.50, but investors applied for 504 million new shares, putting up $54m – well over the $7.1m target – and since trading began on 9th September, the demand caused the share price to rocket.

“The total subscription rate of 763.92% is a new record for the Kenyan market,” noted Eddy Njoroge the chairman of Nairobi Securities Exchange. “We are very grateful to our 17,859 new shareholders for the overwhelming confidence they have shown in our company.”

The self-listing bourse is now looking to use the funds generated by the IPO to overhaul its technology to provide technical support for the listing and trading of new range of products.

CEO Peter Mwangi commented, “The NSE has raised the capital it needs to implement its strategy. With the capital raised through the IPO, the exchange will make investments to support the introduction of new products such as REITS, ETFs and derivatives.

“We are confident that over the next four years, we will achieve our strategic objectives of 100 equity listings and four trillion Kenyan shillings ($45bn) equity market capitalisation.”

The last IPO on the NSE was by the British-American Investments Company (Britam) in 2011, but the encouraging subscription during the self-listing and the bourse’s announcement of a 46% jump in its annual pretax profit to $1.78m, demonstrate the market confidence.