Equity Group Holdings, a Kenyan banking firm, has cross-listed on the Rwanda Stock Exchange, becoming the sixth company to list on the local securities market and fourth firm to cross-list at the exchange.

The regional financial services firm, with banking interests in Rwanda, Uganda, South Sudan and Kenya, listed on the nascent RSE as part of its regional expansion strategy, officials from the company said.

At the Rwanda Stock Exchange (RSE), Equity Group Holdings listed for trade more than 3.7 billion issued ordinary shares, at a par value of Rwf3.76 following the regulatory approval of the Capital Markets Authority.

The company, with a market capitalisation in excess of $2 billion, becomes the largest listed company at RSE.Equity Bank counter opened at Rwf415 and closed at Rwf420 at its first time. The counter raked in Rwf10.6 million total turnover from 25,000 shares traded in six deals.

Speaking after the bell ringing ceremony for the start of trading at the ongoing two-day Capital Markets East Africa International 2015 conference in Kigali, yesterday, Equity Group Holdings managing director James Mwangi urged the bank’s customers and partners in the country to acquire the shares and be part of its success.

"This is a momentous occasion for us, as we invite and extend an opportunity to the local investors a chance to share in our success as part owners of an East and Central Africa leading financial services provider,” Mwangi said.

He added that the purpose of the cross-listing is to facilitate the availability of shares to the wider East African market.

"The cross-listing will provide an easy and efficient way for our stakeholders and partners in Rwanda to participate beneficially in the growth and fortunes of the company through partial ownership. This is in addition to the several efforts being made by the group to localise the brand and customise its services to serve Rwandans better.”

Fastest growing securities

RSE chief executive Pierre Celestin Rwabukumba said the listing confirms that equities from the banking and financial sector are now the fastest growing securities across the region.

"We are excited at the performance of the banking sector, which now features three listed securities following the entry of Equity Group Holdings,” Rwabukumba said.

The other banks listed at the RSE are Bank of Kigali and KCB Rwanda, a subsidiary of another Kenyan financial giant, Kenya Commercial Bank Group.

The listing of Equity Group Holdings comes hot on the heels of the recent corporate reorganisation of the bank.Equity Group shareholders ratified a proposal to establish Equity Group Holdings Limited last year.

The new holding company now owns both the Equity banking and non-banking subsidiaries and will provide strategies, brand, risk and talent management, governance and leadership solutions to its subsidiaries.

In October, Equity Bank Group saw its profit after tax for the third quarter of 2014 grow by 26 per cent to Kshs11.2bn (about Rwf81 billion) up from Kshs8.9 billion (about Rwf65 billion) in the same period in 2013.

With over 9.2 million customers, Mwangi attributed the growth to increasing economic activity across the region as inter country and regional trade within the East African community rose to above 30 per cent.

The bank’s successful implementation of its regional expansion strategy saw Equity Bank Tanzania, Uganda, Rwanda and South Sudan subsidiaries collectively post a 51 and 137 per cent growth in deposits and profit after tax, respectively, showing growing contribution by the regional subsidiaries going forward.

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