Uganda’s NIC to list in July

Written by AGGREY NSHEKANABO

Monday, 22 June 2009

KAMPALA, UGANDA — Uganda government’s 40% stake in the National Insurance Corporation (NIC) will be on sale in one month’s time.

“We are doing this as a means of deepening and capitalizing the capital markets. We did it during the Uganda Clays and later the New Vision listing. We are now doing it with NIC,” Finance Minister Syda Bbumba said last week.

Bbumba was receiving a cheque of UShs807 million (about US$375,702) in dividends from (NIC) last week.

She said other companies that were obligated to offer their shares to the public will also list on the stock exchange at an opportune time.

“It is important to understand that to list on the stock exchange requires a lot of work and scrutiny. We want to list live stock not dead stock. When we know that certain stocks are well and up and running, we shall invite Ugandans through an IPO to buy those stocks,” Bbumba said.

“As you can see, we are now sure NIC is a live stock. Ugandans should buy into it. For others like the Sheraton, Kinyara Sugar Works, Barclays Bank Uganda, Kakira Sugar Works Ltd and many more, they will be offered when they are well prepared,” she said.

NIC chairman, Mr. Remi Olowude said the corporation has very unique insurance offerings and the returns are pretty good.

“With the massive campaign that we have undertaken together with the Uganda Insurers Association, we shall increase insurance penetration. It is important the public gets to understand the importance of insurance to national development,” Olowude said, adding the reasons they deferred the IPO from end of last year to now were related to the global credit crisis.

Olowude said: “At this time, we know the timing is good and the process has been completed. We are set for the market. The opening of the IPO is set for July 17 and will go on for more than a month and close on August 28.”

“I can assure you that we are doing everything possible to make the IPO an unprecedented success. It is a golden opportunity for Ugandans to part-own NIC because we have the pedigree built over time. And the pricing of the IPO will be good to give everyone a chance to buy into NIC,”?he added.

Uganda’s NIC to list in July

Written by AGGREY NSHEKANABO

KAMPALA, UGANDA — Uganda government’s 40% stake in the National Insurance Corporation (NIC) will be on sale in one month’s time.

“We are doing this as a means of deepening and capitalizing the capital markets. We did it during the Uganda Clays and later the New Vision listing. We are now doing it with NIC,” Finance Minister Syda Bbumba said last week.

Bbumba was receiving a cheque of UShs807 million (about US$375,702) in dividends from (NIC) last week.

She said other companies that were obligated to offer their shares to the public will also list on the stock exchange at an opportune time.

“It is important to understand that to list on the stock exchange requires a lot of work and scrutiny. We want to list live stock not dead stock. When we know that certain stocks are well and up and running, we shall invite Ugandans through an IPO to buy those stocks,” Bbumba said.

“As you can see, we are now sure NIC is a live stock. Ugandans should buy into it. For others like the Sheraton, Kinyara Sugar Works, Barclays Bank Uganda, Kakira Sugar Works Ltd and many more, they will be offered when they are well prepared,” she said.

NIC chairman, Mr. Remi Olowude said the corporation has very unique insurance offerings and the returns are pretty good.

“With the massive campaign that we have undertaken together with the Uganda Insurers Association, we shall increase insurance penetration. It is important the public gets to understand the importance of insurance to national development,” Olowude said, adding the reasons they deferred the IPO from end of last year to now were related to the global credit crisis.

Olowude said: “At this time, we know the timing is good and the process has been completed. We are set for the market. The opening of the IPO is set for July 17 and will go on for more than a month and close on August 28.”

“I can assure you that we are doing everything possible to make the IPO an unprecedented success. It is a golden opportunity for Ugandans to part-own NIC because we have the pedigree built over time. And the pricing of the IPO will be good to give everyone a chance to buy into NIC,”?he added.
Source: East African Business Week.