The Finance and Economic Planning minister John Rwangombwa has announced 274% over subscription for the recently launched Bank of Kigali Initial Public Offer (IPO).
The government sold its 45% stake in Bank of Kigali, the leading bank in the country by assets, for $62.5 million in an IPO.
The shares were priced at Rwf 125 in the IPO in which the government was offloading 300.3 million shares.
He further pointed out that over subscription is a good sign that shows people have confidence in the economy. “This shows that there’s an appetite for assets in this economy,” the finance minister remarked.
In this respect, all applicants totaled to 6,636 of shares including institutional and retail investors whereby 75% represent local applicants.
Initially, BK had targeted to raise Rwf 37.5 billion but instead attracted submissions amounting to Rwf 103 billion which is rated at 274 %.
The applications came from both local and international interested buyers, and according to Rwangombwa. “A 40% pool was allocated to international investors, 15% to regional institutional buyers and another 15% to domestic institutional investors, 27.6% to retail investors while 2.4% was set aside for BK management,” he remarked.
The bank’s listing will follow that of brewer Bralirwa in which the government sold a 30% stake last year.
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