Bank of Kigali (BK) announced this week that the Initial Public Offering (IPO) was overwhelmingly successful with all the 300.3 million shares floated oversubscribed almost three fold.
The IPO received tremendous response from retail, as well as local and regional corporate investors who sought to capitalize on the opportunities the stock offers.
While BK had initially targeted Rwf37.5 billion it raised Rwf103 billion.
The domestic retail investors’ pool was oversubscribed by 128 per cent, a clear demonstration of the enthusiasm Rwandans have to own local companies.
Participation by domestic investors, who included all East African Community (EAC) nationals, also points to the financial sector, particularly capital markets, taking a stronger position in the ongoing regional integration process.
The tremendous turnout mirrors investor confidence in the company and the entire economy. However, this is just the beginning. To fully benefit from the same level of investor participation should be exhibited when the shares are listed on the Rwandan Stock Exchange (RSE) later in the month.
As government has approved various incentives to listed companies and investors willing to participate on the stock exchange, the listing of Bralirwa and now BK should encourage other local companies to raise funds in the capital market.