Uchumi gets nod to cross list on Rwandan bourse

Nairobi, Friday

Rwanda’s Capital Markets Authority (CMA) and the Rwanda Stock Exchange (RSE) have given Uchumi Supermarket Ltd a go-ahead to cross list its shares at the RSE.

 Uchumi Chief Executive Officer Jonathan Ciano said the retail chain would make its shares available at the RSE in the next few weeks following the approval.

He noted that trading on that market would encourage Rwandans to have a sense of ownership of Uchumi.

 “Uchumi will be among the few listed securities in the Rwanda capital market which is great for us. It will also give us the visibility that we and our customers need,” said Ciano.

“Our objective is to make Uchumi a business that is owned, managed and supported by East Africans.”

“Listing Uchumi shares in Rwanda will help in the development of the capital market in that country and at the same time provide an investment opportunity to thousands of Rwandese willing to invest in the stock market.”

“This is because it now makes it convenient for them to invest in the company without coming to Kenya.”

 CMA Executive Director Robert Mathu said the regulating body had put in place sufficient infrastructure and the requisite listing and trading rules to facilitate the process.

 “The CMA board has approved the cross-listing of 265,426,614 ordinary Uchumi shares of par value Sh5.00 each on the Rwanda Stock Exchange,” said Mathu.

 He is optimistic that l isting of Uchumi shares on the Rwanda Stock Exchange would pave the way for similar Rwanda companies to participate in the security market as well as enhance public awareness about financial products.

 Uchumi is also seeking approvals to cross list on the Uganda Securities Exchange and the Dar es Salaam Stock Exchange ahead of the planned right issue expected to be completed before close of year.

“We have also made submissions to these securities exchanges and the country capital markets regulators and we are upbeat we’ll obtain approvals to cross list in these markets soon,”  Ciano quipped.

 Thereafter company will be seeking additional capital through a rights issue to finance its regional growth and expansion programme as the retail chain seeks to consolidate its position in the markets.

—Reuters