RH Bophelo plans to target low-end healthcare clients in the region.
South Africa’s low-cost healthcare service provider firm RH Bophelo on Monday cross-listed on the Rwanda Stock Exchange, as it plans to leverage on IT to enter East Africa.
RSE will be the first stockmarket outside the Johannesburg Stock Exchange (JSE) where the company will be listed. From here, the firm said, it plans to target low-end healthcare clients in the region. RH Bophelo chief executive Quinton Zunga said in an interview with South African public broadcaster (SABC) that he had faith that RSE is going to grow as it linked to other stockmarkets in East Africa, an opportunity for the firm to be profiled in the region.
BH Bophelo owns nine hospitals and manages six on behalf of smaller stand-alone hospitals, and it has been listed for almost three years on the JSE.
The firm will not raise capital on the day it lists on the RSE through an initial public offering. Mr Zunga said this will be done later when the firm has established itself in the market. The firm’s primary listing and exchange will remain as the JSE, with the RSE listing being a secondary listing, the firm added in a communique seen by The EastAfrican. The firm said the purpose of secondary listing is to diversify investor’s base and to facilitate RH Bophelo’s ordinary shares availability to the wider East African public among others benefits.
RH Bophelo’s issued share capital of 58,875,000 shares and authorised share capital of ten billion shares, will remain unchanged and current shareholders or potential investors may continue to trade in RH Bophelo’s shares on the JSE. Mr Zunga said East Africa was the firm’s next frontier into the rest of the continent, and Rwanda will be a door to the region.
“We chose Rwanda because it has good, friendly regulations that actually support the listing for us,” Mr Zunga said.
“In April 2020, the directors, subject to approval by the relevant regulatory authorities, approved RH Bophelo’s proposed secondary listing on the Rwanda Stock Exchange.”
Pierre Celestin Rwabukamba, CEO of RSE said the upcoming listing is important for Rwanda, being the first outside South Africa. “It’s not only listing its stock here but they also want to expand their businesses in the country, East Africa and beyond,” Mr Rwabukamba said in an interview with the public broadcaster. Eight companies are currently listed on the RSE and by close of business on Thursday, the market was constant, with RSI and ALSI closing at 122.00 and 150.19 respectively.
At the end of trading time, the Bank of Kigali had offers of 317,900 shares between Rwf260-Rwf274 and no bids. On Bralirwa counter, there were outstanding offers of 747,600 shares between Rwf138 and Rwf150 and no bids.
On Chrystal Telecom counter, there were outstanding offers of 53,500 shares at Rwf 70 and no bids. I&M Bank Rwanda counter, there were outstanding offers of 902,200 shares between Rwf90 and Rwf97 and no bids.
The trading session recorded a total of Rwf1,501,500 ($1,625) worth of bonds traded in one deal.