Centenary Bank plans to list 5%-10% of its shares on the Uganda stock exchange, with two shareholders exiting soon. As a major player in Uganda’s banking sector, the bank currently has assets worth 7.1 trillion Ugandan shillings and serves 3.1 million customers. The listing will place it among six publicly traded banks, potentially attracting new investments.
Centenary Bank in Uganda has announced intentions to list between 5% and 10% of its shares on the local stock exchange. Brenda Magoba, the company’s secretary and head of legal affairs, indicated that two shareholders plan to exit their positions shortly, leading to the shares being available for sale. The precise percentage of shares to be listed will depend on regulatory approval.
Although specific dates for the listing remain unspecified, Centenary Bank is noted as one of Uganda’s leading financial institutions, with assets totaling approximately 7.1 trillion Ugandan shillings ($1.94 billion) and services provided to around 3.1 million customers. Currently, the bank is predominantly owned by Ugandan Catholic dioceses, with additional minority equity held by European investors such as France’s Solidarity International Development Investment (SIDI).
If the listing proceeds, Centenary Bank will become part of a group of six publicly traded banks in Uganda, which includes Stanbic Bank, a subsidiary of South Africa’s Standard Bank Group. The last initial public offering (IPO) on the Uganda stock exchange occurred in 2023, when Airtel Uganda offered 20% of its stake to investors.
In summary, Centenary Bank’s planned share listing on the local exchange highlights a significant move within Uganda’s banking sector, allowing the bank to join other listed institutions. The developments regarding shareholder exits and the potential to attract further investments may contribute to the bank’s growth and expansion in the competitive financial landscape.
In conclusion, Centenary Bank’s strategy to list a 5%-10% stake on the Uganda stock exchange indicates a progressive step for the institution, which has been a major player in the national banking arena. The potential exit of existing shareholders could provide new investment opportunities. Furthermore, joining the ranks of listed banks could enhance its market presence and operational capacity.
Original Source: www.tradingview.com
