The Dar es Salaam Stock Exchange is poised to welcome a new entrant with the impending cross-listing of Kenya’s Uchumi Supermarkets, the largest retailer chain in the East African Community region.
The retailer outlet has applied to the stock exchange regulator, the Capital Markets and Securities Authority (CMSA) to cross-list at the Dar es Salaam Stock Exchange.
The CMSA Public Relations Manager, Mr Charles Shirima told the Business Standard that the retailer was until Friday still sorting out some cross-listing requirements.
He however would not go into details about the requirements. The DSE Chief Executive Officer, Mr Moremi Marwa said they were looking forward to welcome the new entrant at the bourse as its admission would boost market activities at the bourse.
He said the cross-listing of Uchumi Supermarkets would move market capitalisation at the bourse a notch higher and provide an opportunity for Tanzanians to invest in one of the largest retail outlet in the region.
“We are very enthusiastic of this development which is also in line with our objective to integrate our markets’ regulations and infrastructure in the East African region that will also enable investors in the region to invest in our markets in a way that is efficient and effective,” he told the Business Standard.
Uchumi Supermarkets Chief Executive Officer, Mr Jonathan Ciano, said they had applied to cross-list at the DSE to make the outlet have a regional look and increase the number of its shareholders in the region.
“We applied for the approval barely two weeks ago with the aim to expand and increase the shareholders’ base across the East African Community countries.
We want to market Uchumi more as an East African company rather than a Kenyan firm, to expand and increase our footprint in different markets outside Kenya,” Chief Executive Officer, Jonathan Ciano said.
The retailer is already cross-listed on the Uganda Securities Exchange (USE), where it has subsidiaries, and on the Rwanda bourse. Uchumi already has three outlets in Tanzania and is weighing options to open more outlets by next year. “We will be expanding in the region given the conducive business environment in the regional markets.
We are planning to issue new shares in a rights issue to finance our expansion plans,” said Mr Ciano. Uchumi Supermarkets last year became the third company to cross-list its shares on Kigali bourse after Nation Media Group (NMG) and KCB Group.
NMG, KCB Group, East African Breweries (EABL), Kenya Airways and Jubilee Holdings which are primarily listed on the NSE are also cross-listed on the Uganda Securities Exchange and the Dar es Salaam Stock Exchange.
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