CIMERWA PLC, Rwanda’s only integrated cement manufacturer has finally received approval from the Capital Markets Authority and the Rwanda Stock Exchange to list its shares on August 3, 2020.
A free float of 344,575,560 shares (49% of 703,219,520 total shares) worth Rwf41,349,067,200 (About US$43 million) will be available for trading to the investor community at Rwf120 per share on the Rwanda Stock Exchange.
The 49% constitutes shares owned by AGDF Corporate Trust on behalf of the government of Rwanda, Rwanda Social Security Board, Rwanda Investment Group, and Sonarwa Holdings Ltd.
With CIMERWA PLC Listing by Introduction, it will become the second company to list through this approach and the tenth to be listed on the Main Investment Market Segment of the RSE.
Albert Sigei, CIMERWA CEO said that this listing by introduction will prove that, “We have been part and parcel of Rwanda’s growth story with a contribution to the society on many fronts.”
Sigei explained that this will be an opportunity for investors to gain exposure to the attractive cement industry with solid growth potential.
“The listing will further encourage the drive towards the building of a stronger capital market base. We are excited with the opportunity to bring on board a wider pool of retail and institutional investors, both local and international, to participate in the ownership of CIMERWA,” Sigei added.
Speaking on the timing of the equity transaction considering the ongoing COVID-19 pandemic, CIMERWA Board Chairman, Regis Rugemanshuro, explained that the company decided to continue with its plans and expressed confidence that CIMERWA remains a strongly attractive investment opportunity considering the fundamentals of Rwanda as a country and the cement industry in particular.
“The timing is right,” he said, adding that, “This transaction will create opportunities for private investors, 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,” Rugemanshuro said.
With Rwanda having about 57kg per capita cement consumption annually, Rugemanshuro says the company has but only scratched the surface on the huge long-term potential in the cement industry.
The announcement of this equity transaction comes at a time when CIMERWA has been enlisted to supply cement to the ministry of education’s (MINEDUC) school expansion project where over 22,000 classrooms will be built nationwide over a short span of 3 months.
The company’s production is currently at close to design capacity.
“We commend the government of Rwanda for prioritizing the agenda of provision of safe education for all through the MINEDUC classrooms project. We are proud to support them throughout this journey as we pursue our “Strengthening Rwanda” agenda,” Sigei said.