Why East African companies prefer private equity, venture capital fundraising to IPOs
According to the Rwanda Stock Exchange (RSE), the market recorded a 46 per cent increase in turnover from January to September compared to the same period in 2014.
East African companies snubbed stock markets and raised substantial amounts of fresh capital through private equity and venture capital in the 10 years to 2023, highlighting a gradual shift in preference by businesses towards capital raising avenues that appear less stringent and which require minimum public disclosures.
This emerging trend is dampening companies’ appetite for initial public offerings (IPOs), a segment that is facing its share of troubles due to macroeconomic challenges and stringent listing requirements putting off both investors and issuers.
