Wegagen Bank Casts First Stone in Securities Exchange Pond

Jan 12 , 2025.

Wegagen Bank, lined up to become the first company to list on the newly launched Ethiopian Securities Exchange (ESX), has cleared a key milestone in its quest to go public. On January 10, the Bank registered with the Ethiopian Capital Market Authority (ECMA), positioning it to list 6.2 million shares with a paid-up capital of 6.2 billion Br. That same day, the ESX, headquartered in the Nile Building on Abebe Aregay (Ras) St., officially opened in Addis Abeba’s Science Museum. The bourse is expected to modernise the financial sector by accommodating conventional securities trading as well as over-the-counter deals. Firms with valuations above half a billion Birr will be eligible for public trading, while a growth segment will cater to companies valued at 50 million Br or higher.

The Ethiopian Securities Exchange hopes to list as many as 90 companies and attract four million investors in the coming years. It has raised 1.51 billion Br in subscribed capital, with 800 million Br in paid-up capital. Ethio telecom is also preparing to move forward with a secondary share market debut following its initial public offering, signalling the broader ambition to reshape the country’s financial ecosystem.

Wegagen Bank has been preparing for its listing since July 2024, with internal evaluations and compliance measures to meet the public offering directive. The steps included board resolutions, shareholder disclosures, and dematerialising shares through the Central Securities Depository at the National Bank of Ethiopia (NBE). “We’re listing our existing shares and plan to issue new ones soon,” said Getye Mequria, Wegagen Bank's chief marketing strategy officer. While the Bank has secured a preliminary nod from the Exchange, it is still awaiting final clearance. Its 14,549 shareholders are currently undergoing data verification to wrap up the dematerialisation process. “We need to confirm that everything has been completed,” said Yodit Kassa, chief business and financial development officer at the Exchange, referring to the remaining documentation.

PUBLISHED ON Jan 12,2025 [ VOL 25 , NO 1289]