Rwanda government has extended listing of minority shares in privatized firms, expecting issuance of the first initial public offer (IPO) in a period of six months.

The Permanent Secretary in the Ministry of Finance and Economic Planning, John Rwangombwa said last week in Kigali that three companies were being prepared for listing.

He declined to disclose their names avoiding causing problems if they fail to qualify.

He said normally annual audited accounts of Rwandan firms come out between March and April and annual general meetings are held in June.

"It’s after that that we can be sure everything is completed and we are ready to float the shares," he said.

He said the capital market is ready to carry out listing exercise, a view that he shares with the Capital Markets Advisory Council (CMAC).

The official further said government was cautious about the ongoing global economic and financial slump which has affected different stock markets worldwide.

Rwanda launched the capital market January 2008 and immediately started trading operations on the Over The Counter (OTC) market, hoping to close the year with a fully fledged stock market.

The process was delayed by several factors, according to the Permanent Sectary.

"You see preparing a company to go public, you have to have all your accounts strong; your disclosures just in terms of the way you manage your finances really open to the public.

So we have to make sure they have strong systems in place to be able to safeguard the monies of the public that will be coming to invest there," Rwangombwa explained.

Last year, Rwanda Finance Minister, James Musoni told East African Business Week government owns 10% shares in Sonarwa, the leading insurance company; 30% in Bralirwa, Rwanda’s premier brewery; 10% in MTN Rwanda; 18% in Banque Commerciale du Rwanda (BCR); and 19% in Fina Bank.

The government also owns tea plantations and factories which the minister said were being targeted for listing.

The government says it will list shares in privatized companies in which it is a minority shareholder (less than or equal to 30% shares).

Last year, the government was proposing listing of its 10% shareholding in Sonarwa, the largest and most capitalized insurance company in the country.

However, the bid was interrupted by recapitalization of the firm by Nigerian Industrial General Insurance (IGI) Plc, which took over controlling shares.

Currently Rwanda OTC market embraces three government treasury bonds and one Banque Commerciale du Rwanda (BCR) corporate bond. kigali City is also considering issuing a municipal bond latest April. East African Business Week