Uchumi to cross-list on Dar stock exchange
Posted Wednesday, August 6 2014 at 23:00
Move expected to boost retailer’s rights issue plans
Following its successful cross-listing on the Uganda Securities Exchange (USE), where it has subsidiaries, and on the Rwanda bourse, Uchumi supermarkets is set to cross list on the Dar es Salaam stock exchange.
Tanzania’s Capital Markets and Securities Authority (CMSA) has approved Uchumi Supermarkets to cross-list shares on the Dar es Salaam Stock Exchange.
CMSA is a government agency that regulates trading of securities. Uchumi chief executive Jonathan Ciano said in an interview the go-ahead was granted last month but the cross-listing could not have been undertaken as it occurred in the month of Ramadhan.
The Kenyan based retailer, which already has four branches in Tanzania, said it will cross-list on the Dar es Salaam bourse on August 15.
The listing is expected to increase Uchumi’s market visibility and boost its rights issue plans.
“We have made the necessary arrangements regarding the cross-listing and we are optimistic this will broaden our investment pattern and increase our activities in Tanzania,” said Mr Ciano.
He said the retailer will seek to increase its presence in Tanzania by opening more stores to scale up its revenue, mainly in areas with few players in the retail market.
Mr Ciano did not disclose how many more stores Uchumi intends to open in the neighbouring country or the capital outlay for the expansion plan. He, however, said the expansion will be funded by a rights issue, which he said will be conducted in November.