February 14, 2017 / 8:06 AM / 9 months ago

UPDATE 2-Rwanda sets I&M Bank IPO share price at 90 francs

(Adds analyst’s comment)

NAIROBI, Feb 14 (Reuters) - An initial public offering in I&M Bank Rwanda Ltd has been priced at 90 francs ($0.1085) per share, the Rwandan finance ministry said on Tuesday.

The government is selling 99,030,400 shares, representing a 19.81 percent stake in the lender, with the proceeds set to fund the construction of a second airport near the capital.

The offer opened on Tuesday and is expected to close on March 3, the ministry of finance said in a statement.

Analysts said the price of the shares, at 1.6 times the book value, came with a small premium on shares of another listed Rwandan lender, Bank of Kigali , which is trading at a price to book ratio of just over 1.4.

There was no immediate comment by the government on the premium.

I&M Rwanda’s assets stood at 191,805,234,000 francs ($231.25 million) at the end of September, 2016.

It reported an operating profit of 6,686,959,000 francs in the first nine months of last year.

The Finance Minister Claver Gatete told parliament last week that the government aimed to raise 11.5 billion francs from the sale.

The Rwandan bourse currently has seven listed firms valued at $3.4 billion.

$1 = 829.4300 Rwandan francs Reporting by Clement Uwiringiyimana and Duncan Miriri; editing by Jason Neely

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