NIC to list 192 million shares
Publish Date: Jan 16, 2014
NIC to list 192 million shares
Stock brokers trading. Listed companies are compelled to publish their final year results by the end of April every year by legal statue
  • mail
  • img

By David Mugabe

The National Insurance Corporation (NIC) will list 192 million on the stock market Friday following the completion of the rights issue.

The shares derived from NIC’s right issue offer carried out at the end of 2013 will be one of the bigger corporate actions that took place in 2013 alongside Bank of Baroda’s bonus offer.

During its annual general meeting in 2011, shareholders agreed to have a rights issue as a means of generating additional share capital.

Crested Stocks and Securities are the sponsoring brokers. Joseph Kibuuka of Crested Stocks explained that of the 323 million shares on offer, 274 were paid for.

“The 78 million (balance) will remain paid for but unalloted until Corporate Holdings Ltd. (IGI’s holding company) change their memorandum,” said Kibuuka.

During a rights issue, existing shareholders are offered the chance to buy additional shares of the company. The NIC rights issue was at sh5 per share. On the Uganda Securities Exchange, only two companies traded on a comparatively quiet day.

Stanbic continued its activity on the stock market albeit with a slow movement of shares. In total 153,520 Stanbic shares were sold, resulting into turnover of sh4.6m.

There remained bids for some 28.8 million shares that were not matched with potential offers of over 700,000 shares because of a price mismatch.

Analysts view the high demand for Stanbic shares as the wish by investors to be on the company’s books before the announcement of dividends in a few months.

Listed companies are compelled to publish their final year results by the end of April every year by legal statue. Meanwhile, Umeme had the largest turnover of sh51m after selling 166.600 shares.

Total turnover was sh55.7m, with 320.120 shares traded on Tuesday. There was also demand for some 500,000 Umeme shares and one million UCL shares.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact

  • mail
  • img
blog comments powered by Disqus
Also In This Section
RVR adds 120 wagons to its fleet
Rift Valley Railways announces it will add new wagons to its fleet to augment its haulage capacity....
VW shares jump, sparking questions over
Volkswagen stock surged more than 8% despite the massive global pollution cheating scandal engulfing the group....
Mobile phones
The rapid spread of mobile phones across Sub-Saharan Africa is transforming the region, but record levels of growth are due to slow sharply, an industry report said this week....
Oil prices climb on weak dollar
Global oil prices hit multi-month peaks Friday on the back of the struggling US dollar and increasing geopolitical turmoil in the crude-rich Middle East, dealers said....
Uganda tipped on oil and gas
It is now close to a decade since the first commercially viable oil deposits were confirmed in Uganda. But the wait for the country’s first oil barrel is still on, much to the chagrin of oil companies on the local scene....
Uchumi Supermarkets closes some outlets in Kampala
Uchumi Supermarkets has closed two branches in Uganda as part of re-organisation to stabilize the business....
Should Makerere University fees policy be reviewed?
Can't Say
follow us
subscribe to our news letter