In May, Bralirwa, one of the local firms listed on the local bourse, split its shares, meaning that if one had 10 shares they got 20 shares. 

The move seems to be paying off according to Celestin Rwabukumba, the Rwanda Stock Exchange (RSE) chief executive officer. 

Rwabukumba said the move led to an increase in the firm’s share capital and higher trading turnovers at the bourse during the first half of the year.

He said the company was able to raise its share capital from Rwf514.3 million to Rwf5.14 billion of 1,028,570,000 shares through the incorporation of Rwf4.6 billion from retained earnings.

"This meant that a shareholder who as at May 23 owned one share of the company had two after the share capital increase,” he explained.

Consequently, the beverages maker’s share price settled at an impressive Rwf440 on May 30. Before the share split, Bralirwa counter was trading at Rwf860 a share.

Rwabukumba said the development boosted the firm’s volumes, ensuring that many investors traded in the company’s stocks. He added that more people can now afford buying the brewer’s shares, thus creating more liquidity and supply on the market.

"The price of Bralirwa’s share at Rwf860 had become expensive for many investors. However, the counter now has more chances of gaining thanks to increased demand created after the share split,” he explained.

He said fresh appetite for the company’s stocks augmented the bourse’s revenue performance in the period January-June raking in a total turnover of Rwf17.7 billion from 45.8 million shares traded in 853 transactions compared to Rwf28.1 billion traded from 66 million shares between January and June last year..