Home Afrika Ltd., a Kenyan real estate developer whose stock has dropped 95 percent since 2013, plans to raise 5.5 billion shillings ($54 million) from investors to enable it to complete stalled projects.
The only publicly traded property developer in East Africa’s largest economy will ask shareholders at its June 30 annual meeting to approve the sale of 5 billion shillings in convertible debt and a 500 million shilling share offer to existing investors, the Nairobi-based company said in its annual report, published Friday.
Home Afrika needs funds to complete projects that include the Tamarind Tree Residence north of Nairobi, the capital, and Lakeview Heights in the town of Kisumu, Standard Investment Bank Ltd. said in a note Friday. The average completion rate across its sites is 40 percent, according to the developer.
“None of their projects has been completed,” Teddy Yanga, the head of research at AIB Capital Ltd., said by phone from Nairobi. “They are stuck where they are, so they need more cash.”
Home Afrika, which posted a 390 million shilling loss in 2015 after sales dropped 62 percent, replaced Chief Executive Officer Njoroge Nganga in September after two years in charge. Its stock has dropped 95 percent from a peak of 25 shillings in July 2013 to trade at 1.35 shillings Friday, valuing the company at 547 million shillings.