Centenary Bank to List 5%-10% of Shares on Uganda Stock Exchange

Centenary Bank in Uganda plans to list 5%-10% of its shares on the local stock exchange, following impending shareholder exits. The bank, one of the largest in Uganda, currently holds assets worth 7.1 trillion Ugandan shillings and serves 3.1 million customers. This action may position Centenary alongside other listed banks in the industry.

Centenary Bank, a significant player in Uganda’s banking sector, announced its plans to list between 5% and 10% of its shares on the local stock exchange. The announcement was made by Brenda Magoba, the bank’s company secretary and head of legal affairs, at a conference held in Kampala. Two shareholders are set to exit soon, prompting the sale of their shares, although specific details regarding their identities were not disclosed.

Centenary Bank holds assets of approximately 7.1 trillion Ugandan shillings (approximately $1.94 billion) and caters to around 3.1 million customers. Currently, the bank is predominantly owned by Ugandan Catholic dioceses, alongside minority investments from European funds, notably France’s Solidarity International Development Investment (SIDI).

Should the listing take place, Centenary Bank would join five other banks on the Uganda stock exchange, which includes Stanbic Bank, the largest bank in the country and a subsidiary of South Africa’s Standard Bank Group. The last initial public offering (IPO) on the Ugandan bourse occurred in 2023 when Airtel Uganda offered 20% of its stake.

In summary, Centenary Bank intends to list a portion of its shareholding on the Uganda stock exchange, with two shareholders planning exits that will facilitate the sale of shares. As one of Uganda’s largest banks, with significant assets and a wide customer base, this strategic move may enhance market participation and visibility, aligning Centenary with other listed banks. The timing and specifics of the listing remain unconfirmed.

Original Source: www.tradingview.com