Rwandan BK Group is the first firm listed in two markets to make it to the Nairobi Stock Exchange (NSE) 20 Share Index.
The group owns the Bank of Kigali the largest lender in Rwanda, and will be looking to make inroads into the Kenyan Market.
The NSE 20 Share Index is a market capitalisation weighted index that comprises the top 20 companies listed on the Nairobi Bourse.
The index is considered a barometer of the overall performance of the NSE and provides a benchmark for investors to measure the performance of their portfolios.
According to BK Group CEO Béata Habyarimana, the inclusion has elevated BK Group’s profile as an attractive investment option for investors seeking diversification, given that the index is composed of select prominent companies.
“The inclusion in the NSE 20-Share Index will serve as a benchmark for investors to measure the performance of BK Group's stock against the broader market. By consistently outperforming the index, BK Group will attract more investors,” said Habyarimana.
Bank of Kigali is the largest commercial bank in the East African state followed by Bank Populaire du Rwanda (BPR) and I&M Bank.
She added that BK Group’s inclusion in the NSE 20-Share Index comes with an obligation to commit to strong investor relations practices, which will in turn enhance reputation and relationships with shareholders.
As at Wednesday morning BK Group recorded a trading point of Sh40 per share since its cross-listing on the NSE, and an average price of Sh26.
“Being the first foreign, cross-listed stock on the NSE 20 Share Index is a milestone that contributes to the Group's brand strength and reputation both locally and on the international stage,” observed Bank of Kigali CEO, Diane Karusisi.
The firm is betting on inclusion in the index to boost investor confidence, as it indicates that the company is well established and has met certain financial and operational criteria for inclusion.
Habyarimana maintained that despite making it to the NSE 20 Share Index, the Group is adequately capitalised and not looking to raise additional equity from the stock market in the medium to long term.
Inclusion in the NSE 20-Share Index is expected to enhance the company’s global recognition, and serve as a powerful marketing tool to attract investors, partners, and clients who value innovation and market leadership.
This, in turn, should facilitate easier access to capital, enabling the Group to fund growth and expansion initiatives more effectively.
“We believe that the recognition that comes with index inclusion will attract strategic partners and collaborations,” said Karusisi.