Homeboyz Entertainment Plc, listed on the growth enterprise market segment of the NSE in December 2020, made history by becoming the first entertainment company in the country to enter the stock market. The company’s journey has been marked by growth and ambitious plans for the future. In this article, we will explore Homeboyz Entertainment’s decision to sell a stake to a strategic investor and its implications for the company’s future.
The Strategic Investor Deal
In response to the challenging macroeconomic conditions brought about by the Covid-19 pandemic, Homeboyz Entertainment was granted exemptions from trading for one year. This allowed the company to focus on engaging with strategic investors. In late 2022, the company initiated discussions with a strategic investor interested in acquiring a 30 percent stake in the business. The NSE revealed this information in a statement, indicating the progress made by Homeboyz Entertainment in attracting potential investors.
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Homeboyz Entertainment was incorporated as a private limited company on March 15, 2001, and converted to a public limited company in September 2020. The company’s journey began in 1992 as a deejaying unit called Homeboyz DJs, entertaining small house parties and weddings. Over the years, the company expanded its operations and diversified its business segments. Today, Homeboyz Entertainment encompasses various areas, including events management, soundtracks, sound equipment hire, public relations, and a DJ agency.
The Listing and Shareholders
When Homeboyz Entertainment was listed on the NSE, it floated 63.2 million shares on the growth enterprise market segment. The listing statement identified three shareholders: Michael Agwingi Rabar, who held a 56.35 percent stake or 35.612 million shares, Rose Nyaguthii Maina, with a 43.62 percent stake or 27.568 million shares, and John Juma Obonyo Rabar, who held a 0.03 percent stake with 20,000 shares.
The decision to sell a stake to a strategic investor indicates that Homeboyz Entertainment may not have achieved its capital-raising target through the listing process alone. By seeking a strategic investor, the company aims to access additional and broader capital options to finance its growth plans. This step demonstrates the company’s ambition to expand its operations and solidify its position in the entertainment industry.
Homeboyz Entertainment’s Projections and Contracts
Homeboyz Entertainment had projected a turnover of Sh492.4 million by December 2023, a significant increase from the forecasted Sh99.4 million in 2020. The company’s growth plans were based on securing major contracts, including deals with the UN-Habitat, UNFPA, Kenya Rugby League, Safari Rally, E-Sports Federation of Kenya, and the Magical Kenya Open. These contracts were expected to propel the company’s profitability and contribute to its future success.
The board of directors of Homeboyz Entertainment includes Humphrey Wattanga as chairman, Mike Rabar as the founder and CEO, and members Stephen Gugu, Rose Rabar, John Rabar, and Joe Otin. The board’s diverse expertise and experience guide the company’s strategic decisions and ensure effective governance.
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