Uganda power firm Umeme trades at NSE

President Kenyatta (left) walks alongside Uganda President Yoweri Museveni (centre) and Central African Republic President Michel Djotodia (right) during the 6th extra-ordinary summit of the Heads of State and Government on the International Conference of the Great Lakes region (ICHGLR) at the UN Complex in Gigiri, Nairobi, July 31, 2013. President Kenyatta called for a speedy solution between the Sudan and South Sudan governments. STEPHEN MUDIARI  

 

By IMMACULATE KARAMBU

In Summary

• Umeme says 1,000 shares traded at the NSE on the first day at Sh13 per share.

The Uganda electricity distributor started trading at the Nairobi bourse on Wednesday, more than seven months after the company got listed at the Nairobi Securities Exchange.

In a statement, Umeme said that 1,000 shares traded at the NSE on the first day at Sh13 per share.

“This is a significant milestone for Umeme and for the continued integration of the capital markets of the East African Community Member States. We pride ourselves as the first Ugandan company to cross list at the 

NSE and have trading both at the USE and the NSE,” said Umeme’s managing director Charles Chapman.

He said the company is keen on capitalising on the integration to increase investor confidence and provide a choice to investors on where to trade, with a view of attracting more interest in the stock.

Umeme listed on the Uganda Securities Exchange (USE) on November 30, 2012 at Ush274 (Sh9.04) per share through an initial public offering (IPO).

The share is currently trading at Ush360 per share at the USE, representing a 31 per cent increase from the IPO price, with 163,504,455 shares traded since it listed, driven mainly by institutional investors.

Umeme is the largest electricity distribution company in Uganda. It is mandated to operate, maintain and expand the power distribution network in the landlocked country.

At the IPO, 38.3per cent of the company shares were put up for sale with Actis, a UK private equity firm retaining the majority shareholding of the company.