Bank of Kigali (BK) has set its Initial Public Offering (IPO) of 300.3 million shares at Rwf125 each, the Business Times has learnt.
The country’s leading lender, by profitability, is set to float 25 percent of the 45 percent overall shares to be offloaded today.
BK’s Chief Operational Officer, Lawson Naibo, told Business Times, on Tuesday the bank is selling 25 per cent of its share capital for expansion reasons.
Government will sell additional 20 per cent during the IPO, which will bring the total offering to 45 per cent.
BK’s listing becomes the country’s second IPO after Government sold 20 percent of its shares in the country's biggest beverages manufacturer, Bralirwa.
The IPO is set to close on July 29, 2011 while listing of the shares on the Rwanda Stock Exchange (RSE) is set for August 29, 2011.
Government is also planning to sell its shares in telecom giant MTN Rwanda. It plans to raise Rwf25 billion from both IPOs.
Being the country’s second IPO, analysts project the sale to be very successful because of the increased public awareness and the bigger amount of shares to be floated.
Currently, the bank has 33 branches serving over 60,000 retail clients.