MTN has made an initial public offering (IPO) on the Rwandan Stock Exchange much to investor’s pleasure.
This is following a drought on the stock exchange where there has been several cross listing but no registered IPOs.
CEO of the Rwandan Stock Exchange, Celestine Rwabukumba, said, “I think it’s important for many reasons. It’s a new product, it’s a solid company and it is what we would call a blue chip company of international recognition.”
Rwabukumba substantiated that this listing would fall under telecommunications which is a lucrative sector in Rwanda that attracts a lot of investment.
He said there is more confidence in the market with the listing of regional companies, the government coming to the table and seeing international companies issuing debt in this market.
Rwabukumba told CNBC Africa that he projects a listing of two to three companies a year, although idealistically he would like to see more. He further confirmed that a new major listing in the banking sector is on the cards this year.
In a separate interview, the finance minister of Rwanda, Claver Gatete, shared that two banks will be privatised.
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“We enjoy a lot of support from the government, like many other sectors. Besides supplying a pipeline, they are also doing a lot on the labour front, they are creating an enabling environment,” said Rwabukumba.
He considers it a good sign that a purely private company like MTN listed on its market and a major plus that government can add its support through consolidating on the capital markets.
On the issue of convincing companies to list on the stock exchange, Rwabukumba acknowledged that people who have built their companies from scratch have a possessive sentiment about them.
“People don’t know what’s in store for them joining the capital markets, they stand to gain a lot more [in terms of] long-term financing. The capital market is cheaper… when a company is listed they should see the value addition, “ he assured.