The International Finance Corporation (IFC) on Tuesday confirmed its participation in Umeme’s share sale, a day before close of the Ugandan power distributor’s initial public offering.
What you need to know:
According to the information memorandum, Umeme is selling 272.37 million shares worth USh74.9 billion whose proceeds will be used to pay down a shareholder loan.
Another 350 million sale shares worth Ugsh96.25 billion are being sold whose proceeds will accrue to London based private equity fund Actis which owns the company.
The statement said that the company is already pursuing applications from the capital markets regulator in Kenya where it intends to list by introduction after the conclusion of the IPO at the Uganda Securities Exchange.
The International Finance Corporation (IFC) on Tuesday confirmed its participation in Umeme’s share sale, a day before close of the Ugandan power distributor’s initial public offering.
IFC, which is the private sector financing arm of the World Bank, has this year participated in a number of share sales in East Africa and has provided loans to a number of high-profile companies operating in the region.
In April this year, it bought 7.4 per cent of Kenya Airways after conclusion of the national carrier’s rights issue through the purchase of 143 million shares and in July it took up all its rights in DTB’s Sh1.809 billion cash call.
Charles Chapman, managing director of Umeme, said in a statement yesterday that investor interest in the initial public offer (IPO) has been strong throughout the period of the share sale.
“We have received significant participation from all investment categories and we are pleased to announce the intention of IFC to invest in the IPO. In the retail category, we received strong participation from the rural areas and Kampala and other urban areas,” said Mr Chapman.
The IPO which opened on October 15 closes today and Umeme’s customers are being offered one bonus share for every 10 shares they buy. Uganda’s power distributor is expecting to raise Ush171.15 billion through the sale of a total of 622.37 million shares.
According to the information memorandum, Umeme is selling 272.37 million shares worth USh74.9 billion whose proceeds will be used to pay down a shareholder loan.
Another 350 million sale shares worth Ugsh96.25 billion are being sold whose proceeds will accrue to London based private equity fund Actis which owns the company.
The statement said that the company is already pursuing applications from the capital markets regulator in Kenya where it intends to list by introduction after the conclusion of the IPO at the Uganda Securities Exchange.
“We have put in place enough resources and capacity to manage the huge application requests expected today and tomorrow.
Our advice to investors is to reach out to any of the participating banks and brokers for help in getting applications finalized and successfully submitted,” said Kenneth Kitariko, chief executive officer African Alliance Uganda.
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