Shares of Rwanda’s largest lender by assets, Bank of Kigali (BK)
Group Plc, started trading on the Nairobi Securities Exchange (NSE) on
Friday.
It becomes the second company to cross-list on the Nairobi bourse after Uganda’s Umeme in December 2012.
The BK Group’s shares, whose primary listing is Rwanda Stock Exchange, started trading at a reserve price of Ksh30 ($0.30).
The highest bid price for the BK Group shares by 11.30am was Ksh32 per unit ($0.31), a trader said.
The
listing followed a recent successful rights issue at the ratio of three
shares for every one held, a cash call that raised Ksh7 billion ($70
million).
Growth strategy
The bulk of fresh cash will go into supporting Bank of Kigali’s
growth strategy, which is heavy on penetrating the largely untapped
retail banking segment.
“BK Group was raising capital
to meet its gross needs and requirements, and we took this opportunity
to cross-list on the Nairobi Securities Exchange because we wanted not
only to offer more liquidity to our existing shareholders, but also
exposure to the Rwandan market for potential new shareholders and we
have managed to do that with this transaction," chief executive Diane
Karusisi said.
“We want to deploy this capital very
quickly and efficiently in the Rwandan market and we are committed to
deliver the expected results to our investors.”
The
company said last Friday that existing shareholders exercised 103.58
million rights out of the 222.2 million units available offered, with
the balance of 118.64 million untaken rights — known as rump shares —
sold mainly to qualified institutional investors (QII).
Some
146.15 million shares have been allocated on the Rwanda Stock Exchange
(RSE) with the balance of 76.07 million going to the Nairobi bourse.
'Landmark' investment
Head
of investment banking in Africa at Renaissance Capital David Dalhuisen
termed the cross-listing as a “landmark”, giving investors on the
Nairobi bourse to share in returns from Rwanda’s banking industry.
“This
transaction is particularly exciting as it is the first time that an
East African company has combined a cross-listing with a capital raise,
showing the potential and advantages of tapping a new market for that
purpose,” Mr Dalhuisen said.
Bank of Kigali Group Plc
is the holding company of Rwanda’s largest commercial lender Bank of
Kigali Plc, BK Insurance, stock brokerage BK Capital and technology
services business BK TecHouse.
Bank of Kigali Group's
largest shareholders are the Government of Rwanda (29.5 per cent),
Rwanda Social Security Board (25.1 per cent) and international
institutional investors (14 per cent).
“It was very
natural that Nairobi will be our first market for international listing.
The liquidity at the Nairobi exchange is very impressive (and) the
custodial services here satisfy the investors who want that comfort,” BK
Group chair March Holtzman said.
“We have been so
warmly received by the authorities and the Nairobi Securities Exchange.
Today is real a very significant step in terms of regional economic
integration.”
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