Uchumi files application for cross-listing on Dar bourse
Uchumi branch in Nairobi. Uchumi has three outlets in Tanzania and is weighing options to open more outlets by 2015. Photo/File
What you need to know:
Uchumi is cross-listed on the Uganda Securities Exchange (USE), where it has subsidiaries, and on the Rwanda bourse.
Uchumi already has three outlets in Tanzania and is weighing options to open more outlets by next year.
Uchumi’s strategy is to create a pool of stores that will enhance growth and increase returns for shareholders.
Uchumi Supermarkets has applied to the Capital Markets and Securities Authority (CMSA) of Tanzania for approval of its cross-listing plans at the Dar es Salaam Stock Exchange.
The retailer is already cross-listed on the Uganda Securities Exchange (USE), where it has subsidiaries, and on the Rwanda bourse.
Chief executive Jonathan Ciano said in an interview Tuesday the retailer’s listing at the Dar es Salaam Exchange is driven by the need to make Uchumi Supermarkets have a regional look and increase the number of its shareholders in the region.
“We applied for the approval barely two weeks ago with the aim to expand and increase the shareholders’ base across the East African Community countries,’’ said Mr Ciano.
‘‘We want to market Uchumi more as an East African company rather than a Kenyan firm, to expand and increase our footprint in different markets outside Kenya,’’ added the CEO.
Uchumi already has three outlets in Tanzania and is weighing options to open more outlets by next year. Mr Ciano did not, however, disclose how many more stores Uchumi intends to open in the neighbouring country or the capital outlay for the expansion plan.
‘‘We will be expanding in the region given the conducive business environment in the regional markets,’’ said Mr Ciano. It has plans to issue new shares in a rights issue to finance its expansion plans.
The retailer’s cross-listing drive comes at a time when its rival Nakumatt is almost closing a deal to buy out three Tanzanian outlets of South African retail chain Shoprite.
Mr Ciano said Uchumi’s strategy is to create a pool of stores that will enhance growth and increase returns for shareholders.
Uchumi Supermarkets last year became the third company to cross-list its shares on Kigali bourse after Nation Media Group (NMG) and KCB Group.
NMG, KCB Group, East African Breweries (EABL), Kenya Airways and Jubilee Holdings which are primarily listed on the NSE are also cross-listed on the Uganda Securities Exchange and the Dar es Saalam Stock Exchange.
Centum Investments is also cross-listed at the Uganda Securities Exchange while Umeme, whose primary listing is on the Kampala bourse, is cross-listed at the NSE.
