Following the cross-listing of RH Bophelo on the Rwanda Stock Exchange (RSE), the South Africa based investment company plans to raise financial resources, majority of which they say will be invested in Rwanda.
The Johannesburg Stock Exchange (JSE) listed healthcare group RH Bophelo’s secondary listing on RSE officially came into effect on Monday June 1, making it the company’s first evolution steps beyond South Africa.
Quinton Zunga, the company’s Chief Executive, told The New Times that the decision to list on the Rwandan bourse is to diversify its investor base and raise more capital to invest in Rwanda and the region.
"We will be raising capital on the Rwanda Stock Exchange this year,” he said. "Our intent is to invest the majority of the funds in Rwanda and the East African region. We would like to support the healthcare sector in Rwanda, the region and the continent.”
The company says it has made nine acquisitions in healthcare and financial sectors since its inception and JSE listing.
Its hospital portfolio has a total of 665 owned hospital beds which excludes over 800 additional beds under management contract through Africa Healthcare Proprietary Ltd (AHC) across eight South African provinces.
Their top acquisitions in healthcare includes AHC, Medicare Hospital, Rondebosch Medical Centre, Vryburg Hospital and Bell Hospital.
AHC includes AHC Nursing College, AHC Ambulance Services, AHC Pharmacy, AHC Facilities Management and AHC Galindo, which manufactures masks and gloves.
The company has a market capitalization of R578,741,250 (approx. Rwf31bn), with ownership of over 10 hospital facilities across South Africa and close to 20 in total that the company manages.
The healthcare firm was Monday listed on the RSE by way of introduction, becoming the first South African healthcare company to cross list on the local bourse.
This means that the company’s primary shares will be traded on the JSE but investors in Rwanda and in the wider East African region will have access to RH Bophelo’s stocks through the Rwandan bourse.
In April, the firm’s directors approved RH Bophelo’s proposed secondary listing on the Rwanda Stock Exchange with the purpose to broaden the company’s portfolio beyond South Africa.
Exposure to the region
They believe Rwanda can be an epicenter to access the whole region, which informed their choice of RSE.
"Rwanda is setting up an international financial services centre. This is important as it can build a platform for the East African Region and we subscribe to Rwanda’s ambition,” Zunga noted.
Zunga praised Rwanda for having "very investor friendly regulations.”
"The regulators were very friendly and supportive of our listing. We also needed exposure to the East African region,” he told The New Times.
The listing comes at a time when Africa and the world faces a major health crisis occasioned by the outbreak of Covid-19, which has further plunged economies in many countries and halted operations in major sectors.
RH Bophelo officials believe that the private sector has an integral part to play in assisting to manage the crisis and minimize its economic impact.
The company’s stocks was listed with a share price of Rwf502.
Zephanie Niyonkuru, the Deputy CEO at the Rwanda Development Board (RDB) declared RH Bophelo introduction to the official list of RSE main investment market segment.
"The significant contribution of financial markets, particularly the capital markets in financing the domestic economies should lead respective countries to greatly consider them while preparing their strategic development plans,” he said.
The company, the ninth to list on the local bourse, is expected to start trading in the next six months from the time of listing.