CIMERWA PLC or ‘’CMR’’ by trading name was listed by introduction on the Rwanda Stock Exchange Main Investment Market Segment (MIMS) hitting yet another milestone reaching the benchmark of the 10th company listed on the local stock market.
The event marked the listing of the tenth company in the Rwanda capital market and the fifth local company to list on the Rwanda Stock Exchange. The company’s shareholding is constituted of 703,219,520 shares (100%), of which a free float of 344,575,560 shares (49%) was made available for trading for the investor community at the RSE and the shares started trading at Frw 120 per share.
In her key note speech, the Guest of Honor emphasized on the importance of CIMERWA as they are joining the stock market especially at this time of crisis going forward. ‘’If you look at Rwanda’s economic recovery plan, we expect CIMERWA to play a big role both in terms of building the economy through the indirect contribution but also directly contributing to the rebuilding and reconstruction of our economy post COVID19,” said the CEO of RDB, Clare Akamanzi.
The CMA's Ag Executive Director, Eric Bundugu stressed that “Going public through our stock market used to be a myth in the past but I really thank CIMERWA to be among the first movers who have been progressively demystifying that and today, with CIMERWA’s Listing by Introduction on the RSE.”
He added that “CIMERWA operates under the construction sector in Rwanda, which is experiencing a huge boost due to the population growth rate of 2.7 percent annually. Rwanda’s construction sector remains one of the four key sectors that would propel the country towards the National Strategy for Transformation (NST1); NST1 aimed at laying the foundation for future sustained growth and transformation with the private sector facilitated to make maximum contribution to Rwanda’s development.”
CIMERWA Plc’ Chairman, Mr. Regis Rugemanshuro noted that “The timing is right. This transaction will create opportunities for the private investor, and the Government will become a neutral player in a sector whose potential is yet to be fully exploited. There could not be a better avenue of achieving this objective than listing at the RSE. With Rwanda having about 57kg per capita cement consumption annually, we have just but only scratched the surface on the huge long-term potential in the cement industry” Regis said.
The CEO of Rwanda Stock Exchange, Pierre Celestin Rwabukumba reemphasized on the role of the capital market in the economy especially on capital formation that gets achieved from channeling long term savings into the most productive and competitive sectors of the economy.
“Today’s event is no stranger to that theory as CIMERWA could not have been on point as it has chosen to embrace the capital route as a way of giving the opportunity to the general public to own part of one of the productive and profitable sectors of economy using their hard gained savings but at the same time allowing the company to also expose itself to the highest standards of good Corporate Governance, accountability and transparency that our country has been longing for.’’ He added.
The CEO of CIMERWA, Albert K. Segei said that the announcement of this equity transaction comes at a time when the company has been enlisted as the cement provider for Ministry of Education’s school expansion project where over 22,000 classrooms will be built nationwide over a short span of 3 months among other big infrastructure projects in the country.
“This will be an opportunity for investors to gain exposure into the attractive cement industry with solid growth potential. The free float shares from the government are encouraging the drive towards private sector participation to build a stronger capital market base. We are excited with opportunity to bring on board a wider pool of investors, including institutional and retail investors both in the region and internationally to participate in the ownership of CIMERWA Plc”. He explained.
The Listing by Introduction of CIMERWA remains so far the first Listing by Introduction by a local Rwandan company; other listed companies that have done similar transactions are those that have been primarily listed at the Nairobi Securities Exchange and Johannesburg Stock Exchange (SJE) respectively, they cross-listed themselves on the RSE. This happened thanks to the regional integration agenda of EAC capital markets by the stock market regulators and stock exchanges.
To develop further our domestic market, the Government of Rwanda through the Capital Market Authority started implementing Rwanda’s Capital Market Master Plan in July 2018. The 10-year development strategy (2018-2028) with around 78 policy actions assigned to both the public and private sector players targets to make the capital markets an enabler of the Government of Rwanda’s vision 2020/2050 and National Strategy for Transformation (NST1) goals.
The Rwanda’s CMA pledges its continued commitment to implement the highest standards of international best practices as far as stock market development, regulation and investor protection are concerned.