Centenary Bank will list up to 10% of its shares on the Uganda Stock Exchange, marking a crucial development in Uganda’s banking sector. With assets of 7.1 trillion Ugandan shillings and 3.1 million customers, this IPO aims to increase market activity and promote financial inclusivity. It is the first major listing since Airtel Uganda in 2023.
Centenary Bank is preparing to partially list on the Uganda Stock Exchange, offering up to 10% of its shares. This marks a pivotal moment for Uganda’s banking sector, positioning the bank as one of five listed institutions. Centenary Bank holds assets worth approximately 7.1 trillion Ugandan shillings ($1.94 billion) and serves over 3.1 million customers. The move comes as two shareholders plan to divest, though the specifics remain undisclosed.
The bank, majorly owned by Ugandan Catholic dioceses and with minority stakes held by entities such as Solidarity International Development Investment from France, aims to set a precedent in Uganda’s financial market. The last significant market entry was by Airtel Uganda in 2023; thus, this listing represents a momentous shift.
Investors should note that Centenary Bank’s IPO is anticipated to invigorate the Ugandan exchange, potentially increasing interest and activity in the market. This development highlights the bank’s growth aspirations and can influence other financial entities to explore similar strategies in Uganda’s typically subdued share market.
On a broader scale, this listing promotes financial inclusivity by enabling local investors to participate in banking profits, previously accessible only to a few. As global economies seek growth in African markets, Centenary Bank’s public offering may enhance transparency and facilitate integration within international finance.
Centenary Bank’s plan to partially list on the Uganda Stock Exchange marks a significant advancement in the country’s banking sector, potentially transforming market dynamics. The offering is expected to attract investor interest and foster financial inclusivity, as it opens doors for local investors to partake in banking profits. This move not only reflects the bank’s ambitions but also sets a precedent for other institutions in Uganda’s financial landscape.
Original Source: finimize.com
