Rwanda’s cement factory Cimerwa PPC has said that it is currently in the process of listing its shares on the Rwanda Stock Exchange (RSE).
According to the newly appointed CEO of Cimerwa, Albert Kipkemoi Sigei, the company is under a process of being listed on the local bourse.
Without revealing details, Sigei said; “Yes it is true Cimerwa is in the process of listing on Rwanda stock exchange, and you will have news on that soon.”
He added that currently the transaction is in the hands of the relevant regulators, and it will be announced in due course.
According to Capital Markets Authority and RSE guidelines, the process of a company listing cannot be shared as public information until the actual listing is done.
Apparently, listing of Cimerwa will also depend on its market performance which has been affected by the coronavirus pandemic despite a significant financial book last year.
According to the latest Cimerwa financial statement of September 2018 – September 2019, year-on-year (YoY), the cement company, in which the government has 16.54% stake, increased profits on its from Rwf50.2billion to Rwf62.2billio- a 24% increase.
If listed, Cimerwa will become the ninth company on the RSE and the fifth local company after the Bank of Kigali, Bralirwa, Crystal telecoms, I&M Bank alongside foreign companies like Nation Media Group, Uchumi, Equity Bank and Kenya Commercial Bank.
In 2019 the government had put out its stakes in Cimerwa on the market, calling on individual investors and companies to buy the shares.
In an earlier press conference with the former Cimerwa CEO Bheki Mthembu the company said that whenever the government is ready to pull out its shares, it would be a decision that will be okay for Cimerwa but won’t stop its operations in Rwanda and the region.
Mthembu’s successor is also in the same line.
“It’s a decision of the shareholders and currently I cannot speak about it but I can assure you that as soon as decisions and guidance is given from the right bodies and authorities, you will be updated accordingly,” said Sigei on Thursday during his first press appearance.
In March last year, scarcity of cement escalated in the country – pushing prices against consumers’ capacity.
Cimerwa announced that some of the factors that had slowed down production was the upgrade of the plant.
Speaking to government leaders attending the retreat at Rwanda Defence Force (RDF) Combat Training ground in Gabiro, Eastern Province, President Paul Kagame said that the issue can no longer be tolerated, and tasked Prime Minister Dr. Edourd Ngirente to speed up withdraw of government shares in the plant.
Other shareholders in Cimerwa, include SORAS Group, Rwanda Social Security Board (RSSB), and Rwanda Investment Group (RIG). They have also expressed interest to offload their shares.