Capital Markets

Equity debuts at the Rwanda Stock Exchange

Equity Bank started operations in Rwanda two years ago. PHOTO | FILE
Equity Bank started operations in Rwanda two years ago. PHOTO | FILE 

Equity Bank shares are Thursday set to start trading at the Rwanda Stock Exchange following its cross listing. Top bank officials are reported to have travelled to attend the function in Kigali.

The Rwandan market is the third bourse the lender is listing on after it was introduced to Kenyan investors in 2006 and Ugandan Securities Exchange in 2009.

“This move will enhance its brand visibility in the investment front,” said Genghis Capital in a market briefing to investors.

Equity joins Kenyan firms KCB and Nation Media Group which are also listed on the Rwanda Stock Exchange. Cross-listing has been used by Kenyan firms to win customer loyalty in markets where they operate.

Little activity

Equity Bank cross-listed its share in the Uganda market in June 2009 soon after opening its operations in March the same year. The lender started operations in Rwanda two years ago.

KCB is also listed in Uganda, Tanzania and Burundi where it has operations.

The East African region opens access to 126 million people from whom companies can pool capital.

On Wednesday, the share rose marginally to Sh53 per unit up from Sh52 a day earlier. The counter traded 433,300 shares.

There have, however, been concerns of little activity that goes on in the other regional stock markets which locks the value of investors who agree to list their shares in those bourses.