The Capital Market Advisory Council (CMAC) has launched the pre-offer campaign for the Initial Public Offer (IPO) of Barlirwa. Authorities have reiterated that Rwanda’s first IPO will be launched before the end of this year.
However, not many people in Rwanda have the experience of issues related to capital markets, especially the benefits of investing and saving through the stock exchange.
CMAC announced that the first phase of the campaign has already started, targeting opinion leaders and the business community at large.
Bralirwa is the leading beer and soft drinks manufacturer and distributor in Rwanda. The company is putting final touches on preparations to sell the 30 per cent of the shares owned by government, of which 25 per cent will go to the public and 5 to Heineken Group.
But the success of this offer will largely depend on the level of awareness among the investing public; both institutional and individual investors. This requires massive education to the ordinary Rwandans to enlighten them on the challenges and benefits of participating in capital markets because an educated investor is a protected one.
This IPO, if successful, will pave the way for the success of future IPOs. Government is expected to float on the Rwanda Over-The-Counter (OTC) market shares it owns in MTN Rwanda, Sonarwa and Cimerwa in the near future.