Bank of Kigali prepares to cross list on Nairobi bourse

Bank of Kigali (BK) Group has officially launched the trading of its rights issue shares ahead of the much-awaited cross-listing at the Nairobi bourse. The Group, which recently welcomed new additions to its executive committee, is making strategic moves to leverage its digital consumer base for financial services. The Group CEO, Diane Karusisi, shed light on the rationale behind the rights issue price of 270 francs per share. According to Karusisi, the discount offered to shareholders aims to incentivize further investment in light of BK's strong macro fundamentals and leadership position in the market. Karusisi also discussed the decision to list on the Nairobi Stock Exchange, emphasizing the benefits of access to greater liquidity and market activity. The rights issue trading at the Rwanda Stock Exchange (RSE) is a pivotal step for Bank of Kigali as it paves the way for the cross-listing at the Nairobi Securities Exchange. Karusisi highlighted the significance of expanding the Group's offerings to digital consumers by integrating financial services with existing non-financial services. With BK Tech, Howes, and Regis leading the digital consumer segment with over a million subscribers, the integration of financial products aligns with the Group's growth strategy. One of the key points addressed by Karusisi was the pricing strategy for the rights issue. The decision to offer shares at a small discount to the market price aimed to attract investors by emphasizing the value proposition of BK Group amid Rwanda's strong macroeconomic fundamentals and growth prospects. Karusisi expressed confidence in the pricing strategy, despite the volatility in the market, highlighting the Group's focus on delivering superior returns to shareholders. The choice to list on the Nairobi Stock Exchange was driven by the desire to tap into the higher liquidity and market activity offered by the exchange. Karusisi pointed out that the NSE, along with other regional exchanges, provides a platform for real-time trading across borders, enhancing the visibility and accessibility of BK Group's stock. The move to cross-list in Nairobi positions BK Group to benefit from increased trading activity and investor participation, leveraging the exchange's robust market ecosystem. Looking ahead, Karusisi outlined the bright future for Bank of Kigali, citing Rwanda's rapid economic growth and untapped potential in banking services. With Rwanda's banking assets to GDP ratio at 32% compared to Kenya's 60%+, there is room for significant expansion in the market. The Group's focus on digitization and the appointment of a chief digital officer underscore its commitment to enhancing customer experience and driving innovation in the sector. In conclusion, Bank of Kigali's strategic initiatives, including the rights issue trading and cross-listing on the Nairobi bourse, reflect its proactive approach to leveraging market opportunities and driving growth. With a clear vision for the future and a commitment to delivering value to shareholders, BK Group is poised to strengthen its position in the regional market and emerge as a leading player in the banking sector.