In the last few months we've seen two pubilc share offers in east Africa; the Bank of Kigali offer in Rwanda and the British American Investment Co. offer in Kenya, both whose shares were supposed to start trading this week.
While Bank of Kigali offer was successfully oversubscribed by 274 percent (raised $62.5 million out of the targeted amount of $16.7) and went ahead to gained 52 percent on the first day; British American IPO managed a 60 percent subscription (only managing $37.8 million of the $62.9 million targeted) and has said in a newspaper posting that it would delay its stock exchange debut by six days to September 8.
Does this mean Rwanda is a better investment destination in the region than Kenya?
1 comment
Yes I think this happened because, Kagame is a more proactive leader than Kibaki, there are less public wrangles than in Kenya thus investor confidence is higher. Rwanda has been focusing on infrastructure growth. Setting up a business is easier and less corruption than Kenya. Finally lower inflation. Better security etc, all those are factors that are making Rwanda a better business hub, investment destination and safer haven for investment. oh and Kenyan IPOs dont always perform well in the long run(Safcom, Mumias, KenGen, etc)
Wed Oct 05, 05:36:00 PM EATPost a Comment