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Kenya: KCB to Cross-List On USE
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East African Business Week (Kampala)
5 May 2008
Posted to the web 5 May 2008
David Mugabe
Kampala
Kenya Commercial Bank (KCB) is seeking statutory approvals to list shares on the Uganda Securities Exchange (USE), a development that will allow local Ugandan investors to take up shares in the regional bank.
This comes six months after the bank launched its operations in Uganda. If the bank successfully cross-lists, it will boost the cross border investment options that currently has Kenya Airways, East African Breweries Limited and Jubilee Holdings Limitedas the cross-listed counters in the exchanges of the three East African countries.
This, investment experts say are too few and there is a need to have more companies go across borders.
"We see KCB playing a major role in facilitating intra-regional business within the East African Community, including emerging markets of Southern Sudan and eastern DRC Congo," said the Group chief executive officer, Mr. Martin Odour-Otieno in a statement last week.
"With a balance sheet of $2.12 billion (Ush3.6 trillion) and a first quarter performance that saw profitability increase by 62% this year as compared to 2007, KCB's listing on the Ugandan bourse will offer a lot of opportunities for investors," said Otieno.
KCB is also seeking approvals to issue rights to existing shareholders. This is so that it will raise additional capital for growth and expansion
Otieno said the group's annual performance last year saw KCB report $26.2 million (Ush44.6 billion) before tax and "our trading results for the first quarter of this year already show a growth of 62% in profitability.
"Uganda did not contribute to this because we only started in November but we are seeing great promise from the enterprise and a break even position is expected this year," said Otieno.
He said that KCB is also working on listing on the Dar es Salaam Stock Exchange.
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"We want to be the centre of growth and revitalization of the regional and continental financial markets," said Otieno.
KCB will start operations in Mbarara, in western Uganda and officials say premises have been identified in Arua and Gulu in northern Uganda and Mbale in eastern Uganda.
According to officials, KCB is expected to increase its presence in Uganda to 10 networked branches before the end of the year.
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