25 firms have been short-listed to offer advisory services to government in order to ensure that the eagerly waited Initial Public Offering (IPO) of Bralirwa becomes a success, the Ministry of Finance said yesterday.
The Government of Rwanda intends to sale 25 percent shares it owns in Rwanda’s largest Beer and Soft drink manufacturer through a public listing before the end of this Financial Year (2009/10).
“The short list of consultants gave first consideration to those firms expressing interest which meet minimum requirements with relevant and wide experience in dealing with IPO operations,” Vincent Munyeshyaka, the Coordinator of Government Portfolio told Business Times in an interview
In order for the government to successfully undertake this process, it seeks professional services from transaction advisors, sponsoring stockbrokers, co-sponsoring brokers, and legal advisor. It also seeks to attract the services of a public relations firm, receiving banks, shares registrar and reporting accountant.
The government received bids from Rwandan and foreign firms. Last week technical and financial bids in four categories were submitted.
However, there is still an evaluation process to select successful bidders.
“We want this process to be successful since it is the first IPO on our bourse,” explained Munyeshyaka.
When this whole process is completed, the successful bidders will be presented to the government which will fix the share price.
Bralirwa (Brasseries et Limonaderies du Rwanda) is 70 per cent owned by Heineken Group while government owns 30 percent.
The government also intends to list its shares in two major companies which include; MTN Rwanda and insurance Sonarwa where it owns 10 percent and 20 percent respectively.
According the ministry, for every IPO on the capital markets, there will be an open tender to outsource the advisor as required by the privatisation policy.
Munyeshyaka urges Rwandans to invest in Bralirwa once it lists its shares, saying it is a vehicle through which savings mobilization can be enhanced.