Although it is taking longer than expected, stockbrokers are still upbeat about the forthcoming I&M initial public offering, also saying that the results of the recently concluded Crystal Telecom IPO will be a big determinant on how the I&M IPO will do.

Two months ago, the government announced its intention to sell its 19.8 per cent stake in I&M Bank.

READ: I&M Bank Rwanda to go public as State prepares to sell its 19pc stake

However, the deal looks to have cooled as no specific details about the IPO and its share value have been released.

“I would be surprised if the IPO didn’t take place this year. The government must be taking its time to establish everything before launching,” said Davis Gathaara, the managing director of Baraka Capital, a local brokerage firm.

“The delay could be because of the ongoing Crystal Telecom IPO,” he added.

READ: Is Crystal Telecom’s sale of shares a move to dilute political risk?

When asked about the attractiveness of the IPO and the market expectation, he said the market is good and that people were certain buy the shares.

“There is excitement because it’s a new product, when you have different products it is good for the stockmarket. I&M is one of the most profitable banks,” said Mr Gathaara.

In an earlier interview with Robert Mathu, the executive director of the Capital Markets Authority, he said that the concerned parties are involved in the process of appointing a transaction advisor.

“The process of appointing the valuer is ongoing, when this is done the next step will be to establish the company value, which will inform the process of establishing the share value. A decision has been made and we are looking forward to the IPO happening this year,” said Mr Mathu.

With the Crystal Telecom IPO having concluded a week ago, the share market is charged.

Mr Gathaara, whose brokerage firm took part in the Crystal Telecom shares retailing, said the turn-out was better than they expected, despite the short offer time of three weeks.

He said, more buyers turned up in the closing week. He however pointed out that Crystal Telecom is little known in the market, which made it difficult to sell its shares.

“We have just closed so we don’t have specific results of the IPO, but its performance will have a big impact on the coming I&M IPO.” said Mr Gathaara.

Preliminary results about the performance of the Crystal Telecom IPO should be released later this month.