UAP Group has lodged papers for listing on the stock exchange where it anticipates to raise Sh750million from the public. A listing by introduction will follow 24 months after approval. The listing is also meant to pave way for the eventual exit of a trio of Private Equity investors who announced this week that they will be putting Sh4.7 billion into the financial services firm.
"PE firms investment horizon is a maximum of seven years and the agreed mode of exit will be by way of a sale through the NSE or a trade sale approved by the CMA," UAP Group MD James Wambugu said in response to email questions. "It is for this reason that the company is undertaking a public offer in preparation of a listing by introduction within 24 months."
The Sh4.7 billion investment by Aureos Capital, AfricInvest and Swedfund gives the firms a stake of just below 43 per cent in UAP Group. It also grants them one director each on the board and the right to appoint directors in the subsidiaries. "Peter Njoka of Aureos and Skander Oueslati of AfricInvest have already been appointed to join the Board," the company said.
According to UAP, the money so raised will go to several projects. One will be UAP Towers in Nairobi, already under construction and expected to be complete by 2014. Another will be UAP Nakawa Business Park in Kampala, completion expected in November this year. Juba Equatorial Towers and UAP Apartments Juba under construction are slated for completion in December 2013.
The money will also go toward setting up of operations in the DRC, Rwanda and Tanzania. Funds have also been earmarked for internal reorganization suggesting a shakeup of the corporate structure may be in the offing while an Enterprise Resource System for a 360-degree view of business operations such as Oracle or SAP will be deployed.