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South African RHB to cross list on Rwanda Stock Exchange

Taarifa can reliably report that RH Bophelo Limited (RH Bophelo), a South Africa listed company on the Johannesburg Stock Exchange (JSE) since July 2017, will cross-list on the Rwanda Stock Exchange (RSE) on June 1, 2020.

The RSE Listing will be done by way of an introduction and as a result no capital will be raised on the RSE on the day of the RSE listing.

Therefore, RH Bophelo’s issued share capital of 58,875,000 Shares, and authorized share capital of 10,000,000,000 Shares, will remain unchanged and current Shareholders or potential investors may continue to trade in RH Bophelo’s Shares on the JSE.

An official communique seen by Taarifa informing the company’s shareholders of a secondary listing on the RSE, says in April 2020, the Directors, subject to approval by the relevant regulatory authorities, approved RH Bophelo’s proposed secondary listing on the RSE.

RH Bophelo’s primary listing and exchange will remain as the JSE with the RSE Listing being a secondary listing.

The purpose of the RSE Listing, according to the announcement, is to diversify RH Bophelo’s investor base and to facilitate RH Bophelo’s A Ordinary Shares (“Shares”) availability to the wider East African public.

The company also said that it is interested in inviting the region to participate beneficially in the growth and fortunes of RH Bophelo through ownership.

RH Bophelo has obtained all approvals required for the RSE listing, including approval from FirstRand Bank Limited’s Currency and Exchanges Department (“Authorised Dealer”), with authority from the Financial Surveillance Department of the South African Reserve Bank (“SARB”), to provide approval for the RSE listing.

RH Bophelo’s management believes that in the long term RH Bophelo must become Pan-African in nature.

RH Bophelo’s primary listing and exchange will remain as the JSE.

As of May 26, RH Bophelo’s share value on JSE at the end of trading was R9.85 (R1=Rwf54).

A copy of RH Bophelo’s RSE listing documentation, including the detailed information memorandum and other supporting documentation, can be found on RH Bophelo’s website / from Monday, June 1, 2020.

The RSE could not comment on the matter.

However, the RSE that turned 8 years with 8 companies, as of end of 2019, has raised slightly over US$1B (US$761M through the primary market and US$306M traded on the secondary market), equivalent to 10% of Rwanda’s GDP.

In April, Taarifa reported that Rwanda’s sole Cement producer (CIMERWA), will also be listing soon, but the date has not yet been announced.

The two listings will definitely give Rwanda a substantial boost as the country searches for strategic means of recovering from the effects of the #COVID-19 pandemic.

Similarly, despite RSE being a young market, it remains one of the most lucrative and operating in a dynamic and stable economy.

Fast facts about healthcare in SA:

  • There aren’t sufficient capital allocations for innovations.
  • Public infrastructure is overcrowded.
  • Most healthcare institutions in townships and rural areas lack the necessary financial resources and capacity to function at their best.
  • The lower to middle-income market can’t afford private
    healthcare at the current rates, but is willing to pay for quality healthcare at a reasonable price.
  • The concentration of healthcare providers or operators on a few groups with over 60% market share is unsustainable and anti-competitive.
  • There is a high burden of disease in South Africa.
  • There is a shortage of healthcare specialists.

RHB’s significant milestones and changes:

  • In June 2017, the Company listed as a SPAC on the JSE.
  • In October 2017, we announced the acquisition of assets.
  • In May 2018, we obtained approval for the acquisition of the assets.
  • In May 2018, we applied for a reclassification from a SPAC to an investment holding entity.
  • In October 2018, RH Bophelo was classified as a Section 15 investment company by the JSE, under listed equities.
  • In September 2019, we acquired Genric, a short-term underwriter.
  • In April 2020, we listed on the Rwanda Stock Exchange.
  • RH Bophelo is determined to continue targeting businesses or companies that are strategically aligned to its value system.

Source: Taarifa Rwanda

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