Rwanda’s capital markets regulator said on Monday that Kenya’s Nation Media Group (NMG) is set to cross-list in Rwanda on the 2nd of November.
The regulator, the Capital Markets Advisory Council (CMAC) said that it follows approval after all necessary documentation was submitted recently.
Olivier Kamanzi, deputy chief executive of the Capital Markets Advisory Council (CMAC), said that NMG would be introducing 157,118,572 ordinary shares each of the value of KShs 2.50 to the official list of the Rwanda over the counter Market (ROTCM).
“The cross-listing has been approved by the CMAC board and it will happen on the 2nd of November. This cross-listing is important in the development of the capital market in Rwanda. The same shares are cross-listed in Kenya and Uganda and Rwandans are given a chance to make an investment and have long term savings,” Kamanzi said.
NMG, the largest media house in East Africa, will be the second company to trade on Rwanda’s over-the-counter market. Kenya Commercial Bank cross-listed in 2009.
The cross listing in Rwanda will follow that in Uganda which was carried out yesterday after approvals by the Uganda Capital Markets Authority and The Uganda Securities Exchange (USE).
The shareholders of the company at the Annual General Meeting held on May 19, passed a special resolution to offer the company shares to investors across East Africa through the cross-listing of the company‘s shares on the USE, the Dar es Salaam Stock Exchange and the ROTCM.
Last month, the company said first-half pretax profit jumped by more than half as it increased its market share across east Africa. NMG has operations in Tanzania and Uganda where it owns The Daily Monitor Publications, Africa Broadcasting (NTV), KFM radio and Nation Courier Service in Uganda.
The 157,118,572 shares in issue at the Nairobi Stock Exchange (NSE) in Kenya will be available to investors for purchase and they are expected to trade at the trading price in Nairobi.
Thereafter, the prices will be determined by the demand and supply for the share at the ROTC market however by close of business Monday, NMG shares were trading at KShs165.
In Uganda, Some of the first beneficiaries of the cross listing are NMG’s permanent employees in who were allocated 200 shares each this year as part of the NMG’s 50th anniversary celebrations.
“The cross listing is intended to not only communicate NMG sheer business size and intentions for the East African Community but also grow the level and diversity of owners who will now be able to buy into the company’s vision of Media of Africa for Africa,” Linus Gitahi the NMG chief executive officer, said recently.
NMG shares have been traded since 1973 when they were listed on the Nairobi Stock Exchange. The sale of the shares in the region will present an opportunity for local investors to own a piece of East Africa’s largest media house.