Umeme shares were oversubscribed by 36.9 per cent, an indication of the high investor interest on the region's equities market.
Shares of Uganda's power distributor, Umeme, were oversubscribed by 36.9 per cent, an indication of the high investor interest on the region's equities market.
Investors applied for 229.38 million more shares than were on offer in the recently concluded initial public offering (IPO), with the highest interest coming from institutional investors in the region.
Umeme shares are expected to start trading at the Uganda Securities Exchange (USE) on Friday this week, a move that will increase the value of all the shares at the Kampala bourse by Sh14.88 billion (Ushs446.67 billion), going by Umeme’s offer price of Sh9 (Ushs275) per share.
A total of 622.37 million shares were on sale between September 20 and November 7 comprising of 272.37 million subscription shares issued by the power distributor and 350 million sale shares being sold by Umeme Holdings which is owned by London based private equity fund Actis. The market capitalisation of the USE will rise to Sh511.98 billion (Ush15.35 trillion) compared to its closing value of Sh497.1 billion (Ushs14.91 trillion) on Tuesday.
“We have achieved a significant milestone...We are delighted that the IPO was 137 per cent subscribed, despite the rather challenging global market environment, and to have acquired a broad and diverse shareholder base”, said Patrick Bitature, Umeme chairman, in a statement.
The IPO has increased the number of shareholders of the power distributor to 6,471 from seven and a total of 1.624 billion shares will be added to the USE.
Proceeds from the sale of the 272.37 million shares worth Sh2.49 billion (Ush74.9 billion) will go towards the payment of a shareholder loan, while proceeds from the sale of the balance of 350 million shares worth Sh3.2 billion (Ush96.25 billion) will accrue to Actis.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
