I&M Bank shares oversubscribed by 209%

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Finance and Economic Planning minister Claver Gatete exchanges documents with I&M Bank board chairperson Bill Irwin during the Initial Public Offering for the bank in Kigali last month.

The government has announced that the Initial Public Offering for its 19.81 per cent stake in I&M Bank Rwanda, was oversubscribed by 209 per cent.

The government shares in the oldest lender in the country were floated last month as part of the strategy to leave business entities in private hands.

The proceeds from the sale are set to raise funds for the initial equity towards the development of Bugesera International Airport.

According to the Ministry of Finance and Economic Planning, 60 per cent of the 99,030,400 went to Rwandan and East African investors, while 40 percent was allotted to foreign investors.

“The total number of shares applied for from across all pools were 206,893,000 over and above the 99,030,400 shares that were on offer, which represents an oversubscription rate of 209%,” the statement read in part.

According to the Minister of Finance and Economic Planning, Claver Gatete, the oversubscription reflects confidence in the Rwandan economy and the bank in particular.

“Oversubscription of the shares also gives credibility to the Government of Rwanda’s privatization programme,” the Minister is quoted in the statement as saying.

“Having successfully carried out allotment of the shares to the successful applicants, we are confident that the listing of the shares on Rwanda Stock Exchange will facilitate the growth of our capital markets,” he added.

The offer period ran from February 14, 2017 and closed on March 10, 2017.

Countrywide town hall meetings, regional and international roadshows, were conducted during this period to rally potential investors.

Refunds for oversubscribed shares will be done beginning March 27, 2017 and will be done through EFT and SWIFT transfers to accounts indicated in the investor’s application forms, according to the ministry.

Listing on the Rwanda Stock Exchange will be on March 31, 2017 and thereafter the commencement of trading on the RSE.

I &M Bank Rwanda, which was established in 1963, was recently listed as one of the top 30 banks in Africa by a global financial publication, Global Finance Magazine.