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At least seven Kenyan companies are cross-listed in Uganda, Tanzania and Rwanda stock exchanges. Photo/FREDRICK ONYANGO
The Nairobi Stock Exchange (NSE) is set to see the first ever cross-listing of a company from a neighbouring country, opening a new investment opportunity for investors keen on diversifying their portfolio beyond Kenya’s economy.
The intended cross-listing of “at least two companies” from neighbouring countries is still at the discussion stage, but the NSE said at least one of the firms is expected to start trading before the end of this year.
Mr Donald Ouma, the head of product development and research at the NSE, said the new stock is expected to be listed by way of an initial public offering (IPO).
He, however, declined to reveal the identity of the firms citing client confidentiality, but said more details will be made public before the end of next month.
“We have held discussions about a yet-to-be listed stock from the region, the company to be cross-listed would be by way of an initial public offer,” said Mr Ouma.
Rwanda’s biggest State-owned lender Bank de Kigali’s is expected to be sold to the public later this year in an IPO, making it a prime candidate for the intended cross-listing.
At least seven Kenyan companies are cross-listed in Uganda, Tanzania and Rwanda stock exchanges, but no company from the region has listed its shares at the Nairobi bourse.
The cross-listed companies include Kenya Airways, KCB, Nation Media Group, Centum, Diamond Trust Bank, Jubilee Holdings and Equity Bank.
Regional markets
Safaricom, Stanbic Bank Uganda and Rwandese beer maker Bralirwa have floated cross-border IPOs, giving local investors a chance to diversify their investments even though they their exposure to neighbouring countries remains small mainly because the other regional capital markets are still at their infancy.
In Rwanda for instance, the Kigali Stock Exchange was launched in January this year.
It has only three listed companies, Bralirwa — the country’s biggest beer and soft drinks maker, Nation Media Group and KCB.
The expected cross-listing will take the tally of listed firms at the NSE to 56 with at least five other local firms, among them British-American Investments Company and TransCentury expected to list at the bourse before the end of the year.
In an interview last week, chairman of Dyer and Blair Investment Bank, Mr Jimnah Mbaru, predicted that the company most likely to be cross-listed at the local bourse would be Bank de Kigali, which is expected to sell 25 per cent of its shares to the public to raise additional capital to fund growth.
“The only offering I expect to go public and cross-list at the NSE would be the Bank de Kigali,” said Mr Mbaru, whose firm was a joint transaction adviser in the listing of Bralirwa.