RH- Bophelo, a South Africa-based health care company Monday cross listed on Rwanda Stock Exchange, described by officials as a milestone to the company ventures outside South Africa.
Trading under the name RHB, the company listed on the Johannesburg Stock Exchange three years ago.
The new cross listing signals diversification for investors in Rwanda and regional market, Pierre Celestin Rwabukumba, Chief Executive Officer of the Rwanda Stock Exchange said in a statement.
“This is a double plus and a major milestone to the nascent Kigali International Financial Center in its formation stage. It sends another message out there, that we can achieve capital formation from Africans, by Africans and for Africans. That way we will achieve our common goal of One Africa. But only and only together we can achieve that,” he added.
Cross listing is introduction of a company’s shares on another stock exchange; in this case RHB will not be raising any new capital from this cross listing but it is providing an opportunity to the existing shareholders and potential investors of RHB to trade their shares on the Rwanda Stock Exchange.
RHB chief executive Quinton Zunga said the company was excited by its position as the first private equity from outside the region to be listed on the young market.
“We believe this will provide investment opportunities to thousands of Rwandans and other regional investors willing to invest in the stock market since it now makes it convenient to invest in the company right here in Rwanda,” he said in the same statement.
He said as health care centered investment company their goal is to make cross listing part and percel of their expansion strategy.
The event marked the listing of ninth company in the Rwandan market and the first cross listing from outside East African Community region in the nine years of the market’s operation, according to Rwanda Stock Exchange chief executive.
Last year, RHB reported profits before tax of roughly 1.5 billion Rwandan francs (about 1.5 million U.S. dollars), an increase of 226.5 percent compared to 2018 performance which translates into 22 francs earnings per share for every ordinary share, according to information provided by Rwanda Stock Exchange.