Uchumi cross-lists on Uganda bourse next week

November 6, 2013
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Uchumi Chief Executive Officer Jonathan Ciano said the cross-listing of Uchumi shares in Uganda will present an opportunity for many Ugandan investors to own a piece of the East African retail chain/FILE
Uchumi Chief Executive Officer Jonathan Ciano said the cross-listing of Uchumi shares in Uganda will present an opportunity for many Ugandan investors to own a piece of the East African retail chain/FILE
NAIROBI, Kenya, Nov 6 – Uchumi supermarkets will from Wednesday next week cross-list on the Uganda Securities Exchange (USE) after receiving approval by Uganda’s Capital Market Authority.

Uchumi Chief Executive Officer Jonathan Ciano said the cross-listing of Uchumi shares in Uganda will present an opportunity for many Ugandan investors to own a piece of the East African retail chain.

“We have now received approval and we want to thank the regulators for expediting the process. We will be listing 265,426,614 ordinary Uchumi shares of par value Sh5 each shares at the Uganda Securities Exchange on November 13 this year,” said Ciano.

Uchumi Supermarket is currently listed on the Nairobi Securities Exchange and the Rwanda Securities Exchange – where its shares began trading on October 14, 2013.

There are also plans to cross-list on the Dar-es-Salaam Stock Exchange in the coming months.

“The cross-listings are in line with the resolution passed by the Group’s shareholders to offer the company’s shares to investors across East Africa through cross-listing. The transactions are expected to enhance our presence in the region, diversify ownership across the region and boost our profitability,” Ciano said.

“Following review of Uchumi’s information memorandum, the authority is satisfied that the company has made adequate disclosure of material information in accordance with the requirements of the Capital Markets Act that governs listing at the Uganda Securities Exchange,” Capital Market Authority Chief Executive Officer Japheth Katto confirmed.

Uchumi will become the 16th company to be listed on the USE and joins other Kenyan companies including Kenya Airways, East African Breweries, KCB, Equity Bank, Nation Media Group, Centum Investment Company and Jubilee Holdings.

Additionally, the company will be seeking more funds through a rights issue to finance its regional growth and expansion programmes.

Uchumi has a total of five branches based in Kampala and Gulu in Uganda and one branch in Tanzania.

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