September 1, 2011 / 7:57 AM / in 6 years

UPDATE 1-Bank of Kigali shares rise 8 pct at debut

* First trade at 135 Rwanda francs

* Trader says share price to stabilise (Adds trader comment)

KIGALI, Sept 1 (Reuters) - Shares in Bank of Kigali, Rwanda’s biggest bank by assets, rose 8 percent to 135 Rwanda francs in their market debut on Thursday.

A lot of 60,000 shares was the first trade to go through after an initial public offer of a 45 percent stake in the bank by the government, which was met by huge investor appetite.

“We have our first deal at 135 Rwanda Francs. And it seems most of the sellers are looking to make a killing by bidding way above 80 percent to make a profit,” said Consolata Mburu, a trader at CFC Stanbic Financial Services, adding: “but it would seem that the price will stabilise between 130 and 150.”

Rwandan assets have been attracting plenty of interest as investors bet the central African nation will offer good returns as it develops its economy and capital markets from scratch.

Another IPO at the start of the year by brewer Bralirwa received a huge subscription rate. (Reporting by Graham Holliday; Editing by Duncan Miriri and Helen Massy-Beresford)

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