Actis had initially said that it was seeking a dual IPO but it has now opted for an introduction in Kenya, indicating that it could be expecting a full subscription.
A total of 350 million shares worth Ush96.25 billion (Ksh3.157 billion) have been offered for sale while an additional 272.38 million worth Ush74.9 billion (Ksh2.45 billion) have been offered for subscription.
Umeme plans to seek approval for listing at the NSE meaning that it will not be looking to raise funds but an avenue to increase its shareholders base.
London-based private equity fund Actis has announced that it will be listing Uganda’s power distributor, Umeme, at the Nairobi bourse by introduction after the completion of its initial public offer (IPO) at the Uganda bourse.
The private equity fund, is seeking a total of Ushs171.15 billion (approximately KSh5.6 billion), part of which will be used to reduce its debt burden and free up cash that can be used for investment.
“Following the offer, all the shares will be listed on the Uganda Securities Exchange (USE) and later the company will seek approvals to execute a listing by introduction on the Nairobi Securities Exchange (NSE),” said Umeme in a statement released last Friday.
The private equity company had initially said that it was seeking a dual IPO but it has now opted for an introduction in Kenya, indicating that it could be expecting a full subscription.
Umeme shares have been priced at Ush275 (approximately Ksh9) and the move to list at East Africa’s third largest economy’s bourse will increase the number of public firms in that country to 15.
A total of 350 million shares worth Ush96.25 billion (Ksh3.157 billion) have been offered for sale while an additional 272.38 million worth Ush74.9 billion (Ksh2.45 billion) have been offered for subscription.
Proceeds from subscription shares will be used for the specific purpose of paying down a shareholder loan.
The power distributor said that the IPO which has received the approval of the Capital Markets Authority in Uganda will be closing on November 7.
It then plans to seek approval for listing at the NSE meaning that it will not be looking to raise funds but an avenue to increase its shareholders base.
“We are pleased with the approval received from the CMA, which helps Umeme achieve its goal of diversifying its ownership, while providing the Ugandan and wider East African Community and international investors an opportunity to own a stake in Umeme,” said Umeme Managing Director Charles Chapman.
East African retail customers have been offered 20 per cent of the shares, qualified institutional investors in the East African Community 25 per cent, international investors 46 per cent and Umeme employees and directors 9 per cent of the total offer shares.
Consumers of electricity in Uganda who purchase shares will receive additional free shares, said the company in a statement.
Stanbic Bank of Uganda is the transaction advisor and lead receiving bank, African Alliance Uganda as the sponsoring broker and PricewaterhouseCoopers Uganda as the reporting accountants.
South Africa based law firm Webber Wentzel has been appointed legal advisor along with Uganda’s Masembe, Makubuya, Adriko, Karugaba & Ssekatawa Advocates.
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