The company said that the sale of a minority of its shares will diversify the ownership of Umeme and enable a re-organisation of the company’s capital structure.
The power company has appointed Stanbic Bank of Uganda as 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, and Kenya’s Anjarwalla & Khanna Advocates.
Last month, East African Securities Exchanges Association which consists of the USE, NSE, Dar es Salaam Stock Exchange, Rwanda Stock Exchange, and Burundi’s bourse said it expected the listing of African Development Bank Bond and Umeme shares this year.
Uganda’s power distributor, Umeme, has confirmed plans to sell its shares at the Uganda and Kenyan bourses in the fourth quarter of the year, making it the first company to do a cross-border IPO in the region.
The power firm, which is principally owned by London-based private equity fund Actis, yesterday said in a statement that it intends to sell its shares at the Uganda Securities Exchange (USE), and the Nairobi Securities Exchange (NSE) between October and December this year.
If approved, listing on both bourses will boost chances of achieving a full subscription in what may be the only initial public offer (IPO) in Uganda and Kenya this year.
Yesterday, the company said that the sale of a minority of its shares will diversify the ownership of Umeme and enable a re-organisation of the company’s capital structure.
“This IPO will make Umeme stronger, more transparent, and more accountable with our customers and employees as shareholders,” said Umeme MD Charles Chapman in a statement.
Lead receiving bank The power company has appointed Stanbic Bank of Uganda as 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, and Kenya’s Anjarwalla & Khanna Advocates.
In February, Paul Fletcher, a senior partner at Actis, told the Business Daily that the firm was targeting a cross-border IPO to secure liquidity of the stock in the secondary market but added that the timing of the planned offer was still under review.
Last month, East African Securities Exchanges Association which consists of the USE, NSE, Dar es Salaam Stock Exchange, Rwanda Stock Exchange, and Burundi’s bourse said it expected the listing of African Development Bank Bond and Umeme shares this year.
“The initial public offer will support Umeme’s capital raising initiatives to finance the continued development of the electricity distribution network, including projects such as pre-payment metering and energy loss reduction,” said Mr Chapman. He said that the IPO would help the company meet regulatory targets and increase the availability of power.
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