Five to list on Rwanda exchange

OPTIMISTIC: Rwabukumba said there is strong interest shown by investors and the Central Bank reported that turnover at the mart continues to rise, especially after the regulatory framework had improved.

KIGALI, Rwanda - The Rwanda Stock Exchange (RSE) will see more activity with the expected listing of at least five firms later this year.

Officials and brokers from the Rwanda Stock Exchange are optimistic the bourse will receive more Initial Public Offering (IPO) this year, considering the strides it made in both the regulatory framework and increase in annual turnover.

Celestin Rwabukumba, the Chief Executive Officer, said last week they had received confirmation of five companies to list this year. However he declined to give details since it would be premature.

“The interest in the market is there and during the course of this year, we shall see more (listings) on the stock market,” he said.

According to the Central Bank, from July to December last year, the RSE market recorded a total turnover of Rwf 25.8 billion (about $38.4 million) traded in 42.2 million shares compared to a total turnover of around Rwf 11b ($16.4million) traded in 58.2 million shares for the same period in 2012 which is a 133.18% increase in turnovers and decrease of 27.44% in shares.

The RSE also added a new listing in October from Uchumi Supermarkets, a company primarily listed on the Nairobi Stock Exchange.

As regards the price development, the RSE Rwanda Share Index (RSI) and RSE All Share Index (ALSI) went up by 4.99 per cent and 4.34 per cent respectively from July to December last year compared to the same period in 2012 where the RSI and ALSI went up by 50.05% and 22.4% respectively.

In November last year, stock brokers, investors and the media were thrown into a frenzy after it was leaked that Crystal Ventures, the investment arm of the Rwanda Patriotic Front was going to sale its 20% stake in MTN Rwanda through an Initial Public Offering.

Apart from the 20% stake in MTN Rwanda, the firm has interests in real estate development, construction and civil works, telecoms, security services, building materials, furniture, as well as agro-processing.

Jean Aime Habimana, a stock broker with Standard Bank Group Securities in Kigali, said that if the shares are floated on the stock, they would perform well “considering that MTN is the leading telecom company in Rwanda and that other listed domestic companies’ shares are doing well.”

“It will be a good boost for the stock market. Investors like being availed with a number of options to choose from,” he said.

It is not yet clear how many shares the company wants to sell to the public, and the amount of money they are targeting to raise from the sale but what may be for certain is that the telecom will be among the listed on the bourse by the end of the year.

Since the official launch of the Rwanda Stock Exchange in 2011, a total of five companies have been listed with the returns continue to be promising.

There are only two domestic companies, Bralirwa and Bank of Kigali listed on the RSE while Kenyan firms, Nation Media Group (NMG), Uchumi Supermarkets Limited and Kenya Commercial Bank (KCB) are the only regional cross-listings. .

Rwabukumba said that most of the counters have been active over the past three years, signaling the ever increasing confidence investors are gaining on the stock exchange.

By EABW Reporter, Monday, February 17th, 2014


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