Kenyan lender Credit Bank Plc has reaffirmed plans to list on the Nairobi Securities Exchange (NSE) through an initial public offer despite a prolonged bear run at the bourse.

The tier III bank revealed that talks are ongoing between its principal shareholder, industry regulators and advisors on the listing in which it is targeting to raise KES1bn ($6.8mn).

“Despite the ongoing challenges experienced by publicly listed companies, we remain optimistic about the strategic advantages of listing Credit Bank shares on the Nairobi Stock Exchange. The board remains dedicated to upholding exemplary corporate governance and financial inclusivity,” The Star quoted the bank as saying.

Credit Bank, which controls a 0.5% market share, in August indicated plans to list before the end of the year. 

The lender is associated with the family of the late powerful politician Simeon Nyachae, who at one point served as Kenya’s finance minister. The family controls a 27.1% shareholding in the bank through the Sansora Group of Companies.

In April, Mauritius-based private equity fund Shorecap III, LP acquired a 20% stake in the lender that has a network of 17 branches spread across the country.

The bank, which started as a non-banking financial institution in 1986 before converting to a fully-fledged commercial bank in 1995, specializes in the provision of banking services to small corporates and micro, small and medium-sized enterprises.

“Our proposed listing signifies more than just our growth trajectory; it emphasizes our unwavering commitment to elevating Credit Bank’s status from a tier three to a tier two bank, thereby solidifying long-term stability,” The Star quoted the bank.

In the financial year ended December 2022, Credit Bank posted a KES1.68mn ($12,178) net loss from the KES138mn ($1mn) net profit posted in the previous year.

The listing will be the first at the NSE main market segment in about a decade since the self-listing of the NSE in July 2014.

Owing to the prolonged listing drought, the Kenyan government wants to inject life at the bourse with a promise to list at least five public entities over the next months. The government is also urging private companies to consider going public.