Uchumi Supermarkets intends to accumulate Shs168 billion from the stock market through a rights issue following an approval from the Capital Markets Authority.
The firm which cross-listed its shares on the Uganda and Rwanda bourses last year, is riding on the wider pool of potential investors to buy into its company with the view of funding its expansion plans.
The money, according to the Uchumi chief executive officer Jonathan Ciano, will enable the firm increase its turnover in addition to funding its regional expansion plans and refurbishing the existing outlets in Kenya. “We also want to pro-actively position ourselves and be able to finance working capital for our subsidiaries with a consequent growth in market share and sales volumes,” Mr Ciano said in a statement this week.
Mr Ciano said the firm plans to open two additional branches in Uganda and Rwanda, and four in Tanzania by the end of this year.