RSE CEO on what opportunities the CIMERWA listing brings

In a landmark move, Rwanda's leading cement manufacturer, CIMERWA PLC, made history by becoming the first local company to list on the Rwanda Stock Exchange through a listing by introduction. Celestin Rwabukumba, Chief Executive of the RSE, shared insights about the significance of this development in an exclusive interview with CNBC Africa. This listing opens up new investment opportunities for investors and presents a positive outlook for the market. Rwabukumba expressed enthusiasm about welcoming CIMERWA PLC to the exchange, highlighting the importance of diversification and additional products entering the market. The listing by introduction allows companies to expose their shareholding to the general public without necessarily raising capital. Rwabukumba clarified the difference between this approach and a traditional initial public offering (IPO), noting that while both methods involve offering shares to the public, listing by introduction focuses on selling shares to the public on the secondary market without conducting primary market activities. This strategic move enables existing shareholders of companies like CIMERWA PLC to exit and provides an opportunity for price discovery in the secondary market. Rwabukumba drew parallels between IPOs and listings by introduction, likening IPOs to 'a baby who has just been born' seeking capital and introduction to a 'grown-up teenager looking to scale.' He emphasized the role of marketing in IPOs, where shares are marketed prior to listing, distinguishing them from listings by introduction where shares are directly offered to the public. The Chief Executive also addressed market valuation concerns, acknowledging that some experts have raised questions about the undervaluation of CIMERWA PLC shares based on past performance. Rwabukumba highlighted the growth potential in the construction industry and expressed confidence in the resilience of the economy despite global challenges. When queried about investing in CIMERWA shares, Rwabukumba affirmed his belief in the investment, underscoring the importance of backing a product or company one believes in. In conclusion, CIMERWA PLC's listing on the Rwanda Stock Exchange marks a significant milestone in the country's financial market history. The move not only broadens investment opportunities but also reflects the company's commitment to transparency and growth. As Rwanda continues to position itself as a hub for investment and economic development, the addition of CIMERWA PLC to the exchange sets a positive precedent for future listings and market expansion.