Kampala — National Insurance Corporation (NIC)'s 162 million Initial Public Offer received an overwhelming response leading to a Shs2.3 billion over sale.

The shares, which were sold at Shs45 each attracted 2,415 applications and resulted into about shs10 billion instead of Shs7.3 billion which was needed. The shares wee therefore oversold by about 32 per cent. Requests of 2,289 applicants that accounted for Shs8.1 billion were received from individual and 57 that valued at Shs1.5 billion were from corporate companies.

Addressing journalists in Kampala on Tuesday, the Director Privatisation Unit Mr David Ssebabi said as disclosed in the NIC IPO prospectus allotment policy, individual Ugandan Citizens who applied for shares worth more than Shs90 million were given priority over foreign citizens who applied for over the same amount. Ugandans who applied for Shs90 million (2,000,000 shares) were given shares in full and those who applied for over Shs90 million were down-scaled to Shs95.3 million (2,116,000 shares).

Foreign citizens who applied for over Shs90 million were instead allocated Shs90 million (2,000,000 shares).

Corporate applicants that applied for Shs36.5 billion (808,000 shares) were given full shares and those that applied for over Shs36.4 million were reduced to Shs58.5 million (1,300,000 shares). "Individual applicants were allotted 90 per cent of the Offer and 10 per cent went to corporate applicants," said Mr Andrew Owiny, the managing director Mbea Brokerage Services.

NIC IPO that started in December 2009 closed on February 5, 2010. Mr Owiny, said, share Certificates for successful applicants and refund cheques for those who did not receive their full shares will be dispatched next week.

He, however, said that instead of sending refund cheques to the authorised agents where applicants submitted their application forms, NIC is considering wiring refunds directly to individual accounts. "Mechanism for refunding is going to be streamlined and that the process will be prompt," he said. He further said that those who were not allocated full shares will have a chance to buy shares in the secondary market after listing on the Uganda Securities Exchange.