BK Group PLC is set to cross list on the Nairobi Securities Exchange following approval by the Annual General Meeting today morning.
Cross listing of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange.
The listing is set to expose the group to increased capital as well as major international investors who have previously had difficulties accessing the Rwandan market.
The Group’s Chairperson Marc Holtzman said that they have received a lot of interest from international investors who have often faced compliance issues as there are no international custodians as there are in Nairobi.
The Nairobi Securities Exchange presents the advantage of custodians such as Barclays and HSBC allowing international investors.
“We also have liquidity issues. We have about $15000 to $20,000 turn over daily in Kigali while in Nairobi you have about $7M turnover a day. We want to take advantage of this,” he said.
He however said that they are still optimistic about the growth of the Rwanda Stock Exchange in coming days.
He said that the increased access of liquidity and access to capital by listing will also have a positive impact on the share price.
The process is expected to be complete by October this year. The bank is currently working on meeting regulatory requirements as well as building awareness among stakeholders.
The development is expected to raise between $60M and $70M which will fund the group’s digitalization process among other aspects.
More details to follow….