2 December 2012

Uganda: Umeme Share Price Rise to Sh295 On Day One

Photo: New Vision
Umeme officer doing maintenance work.

When Umeme, the sole power distributor in Uganda launched its trading at the Uganda Securities Exchange on Nov. 30, its share price marginally rose to Sh295 from the Sh275 of the Initial Public Offer.

The company began trading on the USE following a successful IPO, which was oversubscribed by over 36%.

Speaking during the bell ringing ceremony in Kampala on Nov. 30, the Umeme Chairman Patrick Bitature said that Umeme's entry into the Ugandan bourse is a huge milestone for the company.

"This is a memorable day for Umeme, not only for being one of the largest companies to be listed on Uganda Securities Exchange but also being the first company to uniquely involve consumers in an IPO, through an incentive share system," said Bitature, adding that as a utility company which is offering services to a cross section of Ugandans, it was important for Umeme to widen its shareholder base to increase the involvement of consumers in its operations.

The USE Chairman, Charles Mbire said in a statement that there is a need for Ugandan companies to seize the various opportunities available for raising funds through the capital markets.

"The exceptional performance of Umeme IPO is good news for the USE, and I am happy to hear that Umeme has the intention to also list at the Nairobi Securities Exchange. As a region, we have plans to integrate our capital markets to increase cross border transactions, while increasing efficiency and liquidity within the region," explained Mbire.

Umeme floated 622,378,000 at Sh275 per share during the IPO and plans to cross-list in Kenya soon when the regional authorities give it a go.

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