The nation’s capital markets regulatory body, Capital Markets Advisory Council (CMAC) has approved Kenya Commercial Bank’s bid to cross-list its shares on the Rwanda over-the-Counter Market (ROCM).
Executive Director of CMAC, Robert Mathu was quoted in a statement issued by KCB confirming that the bank had received the green light to trade its shares on Kigali bourse.
“The board (CMAC) has approved the cross-listing of 2,217,777,777 ordinary KCB shares of par value Kshs 1.00 that is (approximately Rwf8) each on the Rwanda Over the Counter Market,” KCB’s quoted Mathu as saying.
This approval makes KCB the first company to trade shares on the ROTC. It also makes the first company to list on the four stock exchanges within the East African countries.
Burundi is yet to acquire a stock market. According to the statement, Mathu said that the regulating body had put in place sufficient infrastructure and the appropriate listing and trading rules to facilitate KCB’s cross listing process.
After approval KCB said it would make its shares available on the ROTC in the “next few days.”
KCB’s Group Chief Executive Martin Oduor-Otieno is said trading on the Kigali market would encourage Rwandans to have a sense of ownership of the bank.
Otieno noted that listing will give the bank the visibility that it and its customers need.
“Our objective is to make KCB a business that is owned, managed and supported by East Africans,” said Oduor-Otieno.
This marks a landmark development for the ROTC which has only been trading bonds for the past two years.
Rwandans will now be able to buy ownership into KCB by purchasing its shares listed in the four countries.
Otieno was optimistic that KCB listing would pave way for Rwanda companies to participate in the security market as well as enhance public awareness about financial products.
KCB-Rwanda plans to open new branches in Huye, Rusizi, Rubavu and Musanze. It also plans to open three more branches in Kigali including, Nyabugogo, Remera and Kimironko to bring its branch network in Rwanda to eight by close of this year.