From The East African

Rwanda’s biggest local investment company, Crystal Ventures Ltd, is expected to sell its 20 percent stake in MTN Rwanda through an initial public offering that is expected to boost activity on the country’s budding stock market.

Crystal Ventures Ltd is owned by the ruling Rwanda Patriotic Front (RPF).

While the company is still tight-lipped about the deal, including how much it intends to raise, sources say it has already approached the industry regulator seeking approval to list its shares.

The talks are said to be at a technical stage and Renaissance Capital will act as lead transaction advisor.

“Talks between the regulators and Crystal Ventures are ongoing; although they are still at a technical stage, we expect the transaction anytime soon,” said a source at the Rwanda Capital Markets Authority.

If approved, the IPO will be Rwanda’s third local listing after Bralirwa, Heineken NV’s Rwandan unit, Brasseries et Limonaderies du Rwanda SA (Bralirwa), the country’s largest brewery and soft drinks marker, and Bank of Kigali, the country’s largest bank by assets.

Local brokers expect the IPO to generate solid interest among investors as the telecom giant has maintained its lead in the Rwandan market.

Written by The East African Special Correspondent in Kigali