MTN Rwanda will list on the Rwanda Stock Exchange on May 4th following approval by the Capital Market Authority (CMA), the Rwanda Stock Exchange (RSE) and Crystal Telecom’s (CTL) shareholders.
The listing will see 20 per cent of MTN Rwanda’s shareholding held by CTL directly held by the public.
During the listing, 1,350,886,600 ordinary shares will be registered with the RSE at an initial listing price of Rwf269 per ordinary share.
CTL shareholders will become direct shareholders in MTN Rwanda and be able to trade their MTN Rwanda shares on the RSE.
MTN Rwanda Chief Executive Mitwa Ng’ambi said participation in the capital markets of Rwanda presents an opportunity for the investor community at large to directly own MTN Rwanda.
The development has been termed as a demonstration of confidence in the Rwandan Capital Market as well as its expected growth in coming days.
CMA Executive Director Eric Bundugu said MTN Rwanda’s listing by introduction on the RSE will also serve as an attraction to foreign investors into the Rwandan capital market as well as provide liquidity for existing and future shareholders.
Crystal Telecom’s shareholders will become direct shareholders in MTN Rwanda and be able to trade their MTN Rwanda shares on the RSE.
Iza Irame, CTL’s CEO, said that it will allow their shareholders to retain their economic interest in MTN Rwanda while gaining from the efficiency and visibility that comes with direct ownership.
“MTN Rwanda joining the RSE list of companies is a great and welcome development for our market as it increases our market capitalization. The company being of a good size adds on the number of leading brands to our Exchange and offers more visibility into the company’s operations to shareholders and the general investing public, which in turn should trigger more interest from potential new investors going forward,” Celestin Rwabukumba, The Chief Executive of Rwanda Stock Exchange.
MTN Group President and Chief Executive Ralph Mupita said that the listing is particularly significant given the increasing importance of broadband access in driving economic and industrial development across Africa.
The Annual General Meeting of Crystal Telecom Limited in March approved a proposal to dissolve the company and distribute the shares held in MTN Rwanda as excess assets to the shareholders after payments of all the company’s liabilities.