BK to trade over 300 million shares

Bank of Kigali (BK) is set to sell 300,304,000 shares to the public through an Initial Public Offering (IPO) due to be launched tomorrow, Business Times has leant. The country’s largest lender by assets will become the country’s second local company to go public after government successfully sold 25 per cent shares in beer maker, Bralirwa, last year. BK’s Chief Operations Officer, Lawson Naibo, told Business Times, the bank will sell 25 per cent of its share capital to finance its expansion plan. Government will sell additional 20 per cent during the IPO, which will bring the total offering to 45 per cent. The IPO is set to close on July 29, 2011 while listing of the shares on the Rwanda Stock Exchange (RSE) is set for August 29, 2011. Although the share price is yet to be disclosed, the shares will be bought on lots of 100. The price will be disclosed during the launch. Government is also planning to sell its shares in telecom giant MTN Rwanda. It plans to raise Rwf25 billion from both IPOs. Being the country’s second IPO, analysts project the sale to be very successful because of the increased public awareness. “More shares are to be floated than in the first one, more interestingly the masses are now very conversant and have experience in IPOs. So I believe its going to be successful,” said Lionel Mudandi, Operations Officer at African Alliance Rwanda Meanwhile commercial banks are willing to offer loans to potential investors interested in buying Bank of Kigali shares. Ends

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BK to trade over 300 million shares