Centenary Bank intends to partially list 10% of its shares on the Uganda Stock Exchange, marking a significant milestone for the banking sector, which includes 7.1 trillion Ugandan shillings in assets and over 3 million customers. This IPO could stimulate investor interest and financial inclusivity in Uganda’s typically quiet share market, representing a major market shift.
Centenary Bank is set to initiate a landmark partial listing on the Uganda Stock Exchange, planning to offer up to 10% of its shares. This represents a crucial development within Uganda’s banking sector, where Centenary Bank holds assets valued at 7.1 trillion Ugandan shillings (approximately $1.94 billion) and serves around 3.1 million customers. Two of its shareholders are preparing to divest, although specific details and timelines remain undisclosed.
The public offering is significant as it will establish Centenary Bank as the fifth bank listed on the Uganda Stock Exchange, joining other notable institutions like Stanbic Bank, part of South Africa’s Standard Bank Group. Centenary Bank is primarily owned by Ugandan Catholic dioceses, with additional minority interests from international stakeholders such as France’s Solidarity International Development Investment (SIDI). This move is particularly noteworthy, following Airtel Uganda’s recent stock market entry in 2023.
The planned partial listing of Centenary Bank signifies a pivotal moment in Uganda’s financial landscape, potentially motivating other financial institutions to consider similar actions. The IPO is expected to enhance investor engagement and promote greater financial inclusivity, allowing local investors to participate in the banking sector’s profitability. Furthermore, as global markets increasingly focus on African growth opportunities, this listing may facilitate enhanced transparency and international financial integration.
Original Source: finimize.com
