Crystal Telecom’s initial public offering (IPO) has been oversubscribed by 123 per cent, according to a statement by the firm.

The firm was offering about 270.17 million shares which is 20% of MTN Rwanda.

Renaissance Capital, the acting Lead Transaction advisor confirmed that they received over 2300 applications from Rwanda, the East African Region and beyond during the share sale that closed on June 5.

During the two week period, the IPO was at Rwf105 with the minimum share application at 1,000 shares.

The company is expected to begin trading on the Stock Exchange on July 17.

Commenting on the development, Celestin Rwabukumba, the Chief Executive of the Rwanda Stock Exchange (RSE) said that the firm had set the pace as the first full private sector company to utilize capital markets as means to raise finance.

He said as a result, they expect to see growth in the performance of capital markets in coming months.  

"We expect to see growth in our sector over the coming months as other companies seek to do the same.  We also encourage other businesses in the private sector, large or small, to engage in the capital markets  by either listing their companies or investing & trading in listed securities,” Rwabukumba said.

Jack Kayonga, the chairperson of Crystal Ventures Ltd, the parent company of Crystal Telecom said that the firm was upbeat on the uptake of the IPO by both local and international investors.

Crystal Telecom was the country’s third IPO after Bralirwa and Bank of Kigali.

Crystal Ventures has been a shareholder in MTN Rwandancell Limited since 1998.

editorial@newtimes.co.rw