Kenyan retailer Uchumi gets Uganda's share trading approval

FMCG SUPPLIER NEWS

The-Star.co.ke - Nov 14th, 11:14

Uchumi Supermarket has received approvals to trade its shares on the Uganda Securities Exchange. 

Uganda’s Capital Market Authority and the Uganda Securities Exchange have approved the application by the retail chain which will see it listed in three bourses. Uchumi is currently listed on the Nairobi Securities Exchange and the Rwanda Securities Exchange where its shares began trading on October 14.

Chief executive officer Jonathan Ciano said the cross-listing of Uchumi shares in Uganda will present an opportunity for many Ugandan investors to own a piece of the retailer. There are also plans to cross list in Dar es Salaam Stock Exchange in the coming months. Uchumi operates a number of branches in Uganda and Tanzania but no presence yet in Rwanda.

The company will be listing 265,426,614 ordinary shares of par value Sh5.00 each at the Uganda Securities Exchange on November 13.

“The cross-listings are in line with the resolution passed by the Group’s shareholders to offer the company’s shares to investors across East Africa through cross-listing. The transactions are expected to enhance our presence in the region, diversify ownership across the region and boost our profitability,” said CEO Jonathan Ciano.

The Uganda Capital Market Authority CEO Japheth Katto said the authority was satisfied with the level of disclosure by Uchumi.

“Following review of Uchumi’s information memorandum, the authority is satisfied that the company has made adequate disclosure of material information in accordance with the requirements of the Capital Markets Act that governs listing at the Uganda Securities Exchange,” he said. - See more at: http://www.the-star.co.ke/news/article-142717/uchumi-gets-ugandas-share-trading-approval#sthash.WB7YudQQ.dpuf

Uchumi will become the 16th company to be listed on the USE and joins other Kenyan companies including Kenya Airways, East African Breweries, Kenya Commercial Bank, Equity Bank, Nation Media Group, Centum Investment Company and Jubilee Holdings.

Additionally, the company will be seeking more funds through a rights issue to finance its regional growth and expansion programmes.

Uchumi has 23 branches in Kenya. In Uganda, it has a total of 5 branches based in Kampala and Gulu and one branch in Tanzania. The company is keen to establish presence in Burundi, Rwanda and South Sudan in the coming years.









From The-Star.co.ke