On 3rd August, 2020, CIMERWA PLC was listed by introduction on the Rwanda Stock Exchange Main Investment Market Segment (MIMS). An important achievement for the management, finance team and external consultants who made the listing a success.
The milestone marked the listing of the 10th company in the Rwanda market and the 5th local company to list on the Rwanda Stock Exchange. Established in 1982, CIMERWA is the only integrated cement company in Rwanda which mines raw materials,
produces the clinker concentrate, packs and sells cement for general and civil construction. Some products are exported to neighboring countries such as DRC and Burundi.
Out of the listed shares constituting 703,219,520 shares (100%), a free float of 344,575,560 shares (49%) is available to the investor community on the Rwanda Stock Exchange. The 49% constitutes shares owned by AGDF Corporate Trust on behalf of the Government of Rwanda, The Rwanda Social Security Board, Rwanda Investment Group and Sonarwa Holdings Ltd.
The co-lead transaction advisors on record for this listing included BK Capital and Standard Investment Bank. BK Capital doubled up as sponsoring stock brokers and registrar. Trust Law Chambers and PwC were retained as legal advisors and reporting accountants respectively. Bk Capital is the Investment Banking arm of BK Group that offers Securities Brokerage, Investment Management and Corporate Finance Advisory Services
Albert Sigei, CIMERWA CEO stated “We have been part and parcel of Rwanda’s growth story with contribution to the society on many fronts. This listing by introduction will prove to be a fitting example of this statement.”
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.
Mr. Sigei explained that the listing is an opportunity for investors to gain exposure into 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” elaborated Sigei.
Speaking on the timing of the equity transaction considering the ongoing COVID-19 pandemic, CIMERWA Board Chairman – Mr. 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. This transaction will create opportunities for the 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. With Rwanda having about 57kg per capita cement consumption annually, we have just 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 Government’s MINEDUC school expansion project where over 22,000 classrooms will be built nationwide over a short span of 3 months. The supply to this project is progressing smoothly with the Company’s production currently being robust at close to design capacity.
“As a company CIMERWA has always had a deep sense of social responsibility. We have impacted the Rwandan society over the years through di¢erent initiatives such as small businesses empowerment by supporting a tailoring co-operative and local produce traders with a market, sponsoring a school that caters for more than 500 students and support to the community with a water treatment plant serving about 3,800 families and many more. All this to say that social responsibility is a project we are deeply invested in. 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”. Stated Albert Sigei.