Uchumi Chief Executive Officer Jonathan Ciano says trading in the market will encourage Rwandans to have a sense of ownership of Uchumi, giving them the visibility that they need.
“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. Our objective is to make Uchumi a business that is owned, managed and supported by East Africans,” said Ciano.
He says 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 Rwandans willing to invest in the stock market.
CMA’s 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 Board of CMA has approved the cross-listing of 265,426,614 ordinary Uchumi shares of par value Sh5 each on the Rwanda Stock Exchange,” said Mathu.
He is optimistic that listing of Uchumi shares on the Rwanda Stock Exchange will 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 said.
Thereafter, the 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.