Family Bank has fixed its Nairobi Securities Exchange (NSE) listing price at KSh18 per share ahead of its market debut on June 23, a valuation that falls below all benchmark estimates used to assess the bank’s worth and trails prices recorded in the over-the-counter (OTC) market earlier this year.
Deliberate Discount Ahead of Listing
According to the lender, the lower pricing strategy was intentional. Since the listing by introduction does not involve issuing new shares or raising fresh capital, the bank was not under pressure to maximise proceeds from investors.
To determine the stock’s value, transaction adviser Standard Investment Bank employed five separate valuation methodologies. When averaged equally, the approaches produced a blended fair value estimate of KSh29.62 per share. This places the planned listing price nearly 39 per cent below the calculated valuation and beneath each of the individual benchmarks.
Among the models used, the residual income method delivered the highest valuation at KSh43.06 per share. The dividend discount model followed at KSh33.05, while precedent transaction analysis valued the stock at KSh24.26. Price-to-book and price-to-earnings methods generated the most conservative estimates at KSh20.68 and KSh20.15 respectively.
Listing Price Trails Recent OTC Trading
The KSh18 listing price also compares unfavourably with recent OTC market activity. Family Bank shares gained 33.3 per cent over the six months leading to March 2026, rising from an average monthly price of KSh15.21 in October 2025 to KSh20.28 in March 2026, the final full month before the NSE listing.
Viewed against the bank’s financial performance, the discount appears even more pronounced. The last time Family Bank shares traded near the KSh18 level was in July 2023, when the monthly average stood at KSh18.16.
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Since then, the lender’s profitability has strengthened considerably. Profit after tax has more than doubled from approximately KSh2.5 billion in 2023 to KSh5.38 billion in 2025. Over the same period, book value per share increased from about KSh13 to KSh20.91.
The listing price implies a price-to-book ratio of 0.86 times, significantly below the roughly 1.23 times multiple investors were willing to pay in the OTC market during 2022 and 2023, despite improvements in the bank’s return on equity.
NSE Debut Expected to Boost Liquidity
While questions remain about valuation, the NSE listing is expected to significantly improve liquidity for Family Bank shares, which historically recorded limited trading activity on the OTC market.
Only 6.85 million shares changed hands during the twelve months to September 2023, compared to the bank’s 1.287 billion shares in issue at the time, representing less than one per cent of the total share register.
Following the NSE debut, approximately 572.7 million shares, equivalent to 34.5 per cent of the bank’s issued share capital, will be available for public trading as free float. The move is expected to provide investors with greater access to the stock while enhancing price discovery and market activity.
