Kampala — THE results of the initial share offer of the National Insurance Corporation (NIC), were announced earlier this week. The share issuers were pleasantly surprised at the interest in the share offer despite the adverse publicity that dogged the offer period that run throughout January.

The small size of the offer, 161 million shares up for grabs, compared to one billion during the Stanbic offer three years ago, meant there was little corporate activity. Individual applicants accounted for 87% of the sh7.2b issue.

Now applicants will receive their certificates next week and trading will open on the Uganda Securities Exchange on March 25.

It was gratifying to see many individuals interested in the offer. Shares can provide a useful store of value and creator of wealth for holders as owners can also share in the growth of companies through their share interest.

In buying a share in a good company, you are ideally hiring competent management with years of experience and a company with an established market position - a much less risky proposition than trying to go into business yourself. Over the long term, owning shares can be a very profitable enterprise.

But on a wider level, selling shares in enterprises allows individuals to have stakes in companies, which in turn means they will have more than a passing interest in the economy and national stability.

There is only so much security forces can do in maintaining law and order, but widespread property ownership among the citizens of a country will ensure national stability. It is not by mistake that it is in the most volatile countries that poverty is prevalent.

The Government should consider encouraging companies to issue their shares to the general public in order to reap the national dividends that go beyond the financial gain of individuals.