Business
Uganda electricity distributor, Umeme, launches regional IPO
“We are pleased with the approval received from the Uganda Capital Markets Authority, which helps Umeme achieve its goal of diversifying its ownership, while providing the Uganda and wider East African Community and international investors an opportunity to own a stake in Umeme,” said Charles Chapman, Umeme managing director, in a press statement.
Umeme said it will list at the Nairobi Securities Exchange in Kenya, by introduction, where a company does not raise cash when its shares begin trading at the stock market. However, Umeme backtracked on plans to offer the IPO simultaneously in Uganda and Kenya.
The company, though, did not say why it opted to list by introduction at the Nairobi Securities Exchange as opposed to offering the IPO in Kenya.
Officials at Kenya’s capital market authorities said they will meet with Umeme’s officials next week to finalize the approval process.
“We are supportive of Umeme’s cross-listing at the Nairobi Securities Exchange but one or two things need to be checked before we approve the process,” said Kung’u Gatabaki, Chairman of Kenya’s Capital Market Authority.
By cross listing at the Nairobi Securities Exchange, Umeme hopes to attract Kenyan investors who have an appetite for share offers in the region.
East African retail customers have been offered 20 percent of the shares, qualified institutional investors in the East African Community 25 percent, international investors 46 percent and Umeme employees and directors 9 percent of the 622,378,000 shares on offer.
