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I&M Bank (Rwanda) Plc Rights Issue Listing on Rwanda’s Capital Market

I&M Bank Rwanda Plc. or ‘’IMR’’ by trading name has concluded her Rights issue and officially listed the new shares on the Rwanda’s Stock Exchange Main Investment Market Segment (MIMS) on 30th October 2020. The event marked yet another milestone by registering a third equity transaction and second Rights issue from a domestic listed company after Bank of Kigali Plc  in 2018.

The Rights issue was constituted of 202,000,000 shared from which the bank was seeking to raise Rwf 8 billion. The issue was subscribed at 112% and the new shares were added to the free float of the company and were made available for trading for the investor community at the RSE and shares started trading at Rwf 45 per share.

The Ag. Executive Director of the Rwanda's Capital Market Authority (CMA), Mr. Eric Bundugu stressed that "Today's celebrations of those above mentioned achievements would have not happened without a visionary leadership of our country and this, through the continued efforts of the Government of Rwanda to create and maintaining a conducive environment to allow Rwanda's capital markets industry and financial sector to play their intended roles in developing further our economy."

He added that "The CMA pledges its continued commitment to executing several key initiatives aimed at developing a more transparent, liquid and accessible market, with a modern market structure to support the delivery of a wide range and diversified set of investment products. Implementing the highest standards of international best practices as far as stock market development and regulation are concerned will also remain a priority for the CMA."

The Deputy Chief Executive Office of the Rwanda Development Boad (RDB), Zephanie Niyonkuru in his speech, he noted that "I would like to congratulate I&M Bank Rwanda  doing the rights issue and its oversubscription is a vote of confidence from shareholders. As the Government of Rwanda, we will continue to improve the easy of doing business in Rwanda to assist our investors."

I&M Bank Pls' Managing Director, Mr. Robin Bairstow shed more light on the transaction: "In March 2017 we embarked on a new journey  where we broadened the Bank's ownership base after a successful Offer for Sale which was oversubscribed by 209% and our ownership passed from a few investors to more than 900 individuals and institutions alike. We opened applications for a Rights Issue transaction granting existing shareholders an opportunity to increase their stake in the Bank at a discounted price and we are excited to announce another milestone. Our Rights Issue transaction was oversubscribed by 112%." Bairstow said.

The Lead Transaction representative on the Issue from Faida Securities Rwanda Ltd., Mrs Rina Hicks emphasized on the strides and resilience this market has shown given the global economic crisis going on. "Given this year's difficulties, the performance of this Rights Issue has been reassuring, and goes to show the increasing growth of the Rwandan Capital Markets and the confidence shareholders have in the future growth prospects of I&M Bank Rwanda and the whole economy." She explained.