Kenyan Retail Chain Uchumi Cross-Lists on the Uganda Securities Exchange

uchumi retail storeKenyan retail chain, Uchumi, began trading on the Uganda Securities Exchange (USE) on Wednesday after receiving approval from the Ugandan capital markets authority.

The retail chain has cross listed 265,426,614 ordinary shares valued at Ksh 5.00 each.

This move is reportedly part of the company’s larger strategy to be listed on all East African stock markets as it prepares to raise capital for expansion.

Uchumi Chief Executive Officer Jonathan Ciano said “We bring to this market a very good stock backed by strong business fundamentals. I encourage investors in this market to take advantage of this opportunity to own a piece of one of East Africa’s largest indigenous retail chain.”

He stated that the Board’s decision to cross-list was motivated by the great potential in the Ugandan market.

Ugandan Prime Minister Patrick Mbabazi, who officiated the event, said the current regional integration efforts were very important to capital markets in the region.

“I would like to thank the management and board of Uchumi Supermarket for taking the decision to list the company on the USE. Our stock market has been greatly supported by Kenyan companies which now constitute half of the listed companies on the USE,” Mbabazi added.

Uchumi has been operating in Uganda since 2002 and has so far established 5 branches in the country. The sixth branch is set to be opened at the end of this month in Mbale municipality.

Uchumi’s CEO said in addition to setting up shop in Uganda, the company was determined to give East African investors the opportunity to share in the success of one of the largest retail chains in the region.

Uchumi becomes the 16th Kenyan company to cross-list on the USE after Kenya Airways, East African Breweries, KCB, Equity Bank and Nation Media Group among others. The retail chain has also announced that it successfully cross-listed on the Rwanda Securities Exchange on October 14th and is currently seeking authorization to cross-list on the Dar es salaam stock exchange.

“The Dar-es-Salaam project is advancing well and we hope to close all regulatory issues and conduct a similar ceremony there in the very near future” said Ciano.