Uchumi Supermarkets has received approval to cross-list on the Kampala bourse barely a month after listing its shares on the Rwanda Stock Exchange (RSE).
The supermarkets chain has said it plans to start trading on the Uganda Securities Exchange (USE) next Wednesday, giving investors a third platform on which they can access its shares.
“We have now received approval from the Capital Markets Authority and Uganda Securities Exchange to list Uchumi shares on the USE,” said Jonathan Ciano, chief executive officer Uchumi Supermarkets.
The company, whose primary listing is on the Nairobi Securities Exchange (NSE) will have added visibility in Uganda where it already has branches and to potential customers in the Rwanda market where it also hopes to expand operations.
It also plans to cross-list in the Dar es Salaam Stock Exchange (DSE) in coming months where it also has a branch.
“The cross-listings are in line with the resolution passed by 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 Mr Ciano.
The cross-listings will also widen its pool of potential investors for its planned cash call where it wants to raise money for future expansion.
Faida Investment Bank is the transaction advisor and sponsoring broker for the planned cash call, Equity is the receiving bank, Hamilton Harrison & Mathews Advocates are the legal advisors and Ernst &Young are the reporting accountants.
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, Centum Investments is also cross-listed at the USE while Umeme, whose primary listing is the Kampala bourse, is cross-listed at the NSE.
The supermarkets chain, which has 23 branches in Kenya, 5 branches in Kampala and Gulu and one branch in Tanzania, is planning to expand into Burundi, Rwanda and South Sudan.
The supermarkets chain profit after tax for the full year ended June 2013 jumped 30.31 per cent to Ksh357.01 million ($4.1 million) as at compared to Ksh273.97 million ($3.2 million) as at June 2012 despite a rise in costs.