Tanzania’s Capital Markets and Securities Authority (CMSA) has approved Uchumi Supermarkets to cross-list shares on the Dar es Salaam Stock Exchange.
CMSA is a government agency that regulates trading of securities. Uchumi chief executive Jonathan Ciano said in an interview the go-ahead was granted last month but the cross-listing could not have been undertaken as it occurred in the month of Ramadhan.
The regional retailer, which already has four branches in Tanzania, said it will cross-list on the Dar es Salaam bourse on August 15.
The listing is expected to increase Uchumi’s market visibility and boost its rights issue plans.
“We have made the necessary arrangements regarding the cross-listing and we are optimistic this will broaden our investment pattern and increase our activities in Tanzania,” said Mr Ciano.
The retailer is already cross-listed on the Uganda Securities Exchange (USE), where it has subsidiaries, and on the Rwanda bourse.
Mr Ciano said the retailer will seek to increase its presence in Tanzania by opening more stores to scale up its revenue, mainly in areas with few players in the retail market.
Mr Ciano did not disclose how many more stores Uchumi intends to open in the neighbouring country or the capital outlay for the expansion plan. He, however, said the expansion will be funded by a rights issue, which he said will be conducted in November.
“We have already applied to the Capital Markets Authority informing them of the rights issue, but this can only be done after we publish our annual financial statements. We are optimistic this will play a key role in funding our expansion plans.”
The retailer plans to open stores in South Sudan and Rwanda too. Uchumi’s cross-listing in Tanzania comes at a time when rival Nakumatt Holdings has closed a deal to buy out three Tanzanian outlets of South African retail chain Shoprite.
Already, Nakumatt has occupied one of the shops and started operations two weeks back.
Uchumi’s cross-listing will see it join big leagues of Kenya’s corporate heavyweights that include Nation Media Group, KCB Group, East African Breweries, Kenya Airways and Jubilee Holdings which are primarily listed on the NSE and are also cross-listed on the Uganda Securities Exchange and the Dar es Salaam Stock Exchange.