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Uchumi shares start trading on Kampala bourse

Wednesday November 13 2013
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From Left: State Minister for Housing Sam Engola, State Minister for Finance Aston Kajara, Ms Khadija Mire chairperson Uchumi Supermarkets, Jonathan Ciano Group CEO Uchumi Supermarkets, CMA outgoing CEO Japheth Kato and Grace Kavuma, CMA chairman. Photo/COURTESY

Uchumi Supermarkets on Wednesday cross listed its shares on the Uganda Securities Exchange (USE) a month after they started trading on the Kigali bourse.

The move, which now brings the number of cross listed companies on the Kampala bourse to eight, gives the Nairobi Securities Exchange (NSE) listed company more visibility in the Uganda market and investors a third platform from which they can access its shares.

Uchumi Supermarkets, which is also seeking to cross list on the Dar es Salaam Stock Exchange (DSE) ahead of a planned rights issue, is also widening the pool of investors from which it can raise funds.

READ: Uchumi Supermarkets becomes third to cross-list on Kigali bourse

Jonathan Ciano, chief executive officer, Uchumi Supermarkets said that the cross listings in Kampala, Rwanda Stock Exchange (RSE) and Dar es Salaam were being done simultaneously and as a result the firm’s shares would be accessible to more stakeholders across the region.

“The Dar es Salaam project is advancing well and we hope to close all regulatory issues to the satisfaction of the respective authorities of the country and conduct a similar ceremony there in the very near future,” said Mr Ciano.

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Nation Media Group (NMG), KCB Group, East African Breweries Limited (EABL), Kenya Airways and Jubilee Holdings which are primarily listed on the NSE are cross-listed on the USE and DSE.

NMG and KCB Group are also cross-listed on the RSE, Equity Bank and Centum Investments are also cross-listed on the USE while Umeme, whose primary listing is the Kampala bourse, is cross-listed on the NSE.

Uchumi has 23 branches in Kenya, 5 branches in Kampala and Gulu and one branch in Tanzania and is planning to expand into Burundi, Rwanda and South Sudan.

READ: Uchumi Supermarkets posts 30pc growth in profit, plans expansion

The supermarkets chain is planning to sell 100 million shares to existing shareholders through the planned cash call.

In December last year, during the company’s 32nd annual general meeting, Mr Ciano in a presentation said that the super market chain was targeting to raise Ksh1.5 billion ($17.4 million).

However, at a later press conference he said the amount to be raised will determined by the company’s expansion budget and the retailer’s market price at the time of issue.

“We will be seeking additional capital through a rights issue to finance regional growth and expansion programme as we seek to consolidate our position in the region. We invite our new Uganda investors to participate,” said Mr Ciano on Wednesday during the listing ceremony.

Uchumi’s shares closed at Ksh21 ($0.247) on Tuesday at the NSE 9.95 per cent gain from Ksh19.10 ($0.222), its closing price at the end of last year.

Its profit after tax for the full year ended June 2013 jumped 30.31 per cent to Ksh357.01 million ($4.1 million) compared to Ksh273.97 million ($3.2 million) as at June 2012.

READ: Supermarket chain to spend $16.5m on five new branches in the region

Customer numbers rose by 10 per cent during the year to 24 million from 22 million but revenues rose by a marginal 3.23 per cent to Ksh14.36 billion ($167million) for the year ended June this year from Ksh13.91 billion ($165.2 million) for the year ended June last year reflecting the tough operating environments in Kenya and Uganda.

Trade margins rose to 19.26 per cent during the year ended June 2013 from 18 per cent for the year ended June 2012 while finance costs dropped by 35.96 per cent to Ksh16.06 million ($186,751) from Ksh25.08 million ($297,768), helping improve the company’s profitability.

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