Bank of Kigali Group on Friday started trading its shares at the Nairobi Securities Exchange, becoming the second firm to cross-list at the Nairobi bourse.
Uganda’s Umeme cross-listed at the NSE in December 2012.
Read:
The Rwandese lender, whose primary listing is Rwanda Stock Exchange, started trading at a reserve price of Sh30.
"We are delighted that the BK Group has chosen to tap into the Kenyan capital market as it seeks to strengthen its investor base, enhance liquidity of its stock as well as harness its growth opportunities," NSE chief executive Geoffrey Odundo said.
Through the cross-list by introduction, the firm is looking to acquire external financing by tapping into Kenya’s capital markets with a diverse investor pool.
"BK Group was raising capital to meet its gross needs and requirements, and we took this opportunity to cross-list on the Nairobi Securities Exchange because we wanted not only to offer more liquidity to our existing shareholders, but also exposure to the Rwandan market for potential new shareholders and we have managed to do that with this transaction," BK Group chief executive Diane Karusisi said.
The Rwandese lender recently raised Sh7 billion ($70 million) through a rights issue aimed at funding the group’s digitalisation process, meet capital adequacy requirements and implement its growth strategy.
"This transaction is particularly exciting as it is the first time that an East African company has combined a cross-listing with a capital raise, showing the potential and advantages of tapping a new market for that purpose," Head of investment banking in Africa at Renaissance Capital David Dalhuisen said.
BK Group placed 222.2 million units on offer, of which 103.58 million were exercised by existing shareholders.
The untaken (rump) shares to be placed with qualified institutional investors at the NSE. This means the shares will not be available to the general public in Kenya.