Business
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
newvision

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 digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Libyan government injects sh180b to revamp Utl
The Libyan government has injected $56m to revamp Uganda Telecom Limited (Utl) that has been facing serious financial problems, the Libyan Foreign Affairs minister, Mohamed Dayri has revealed....
China eyes more investment opportunities in Uganda
A group of Chinese investors have expressed interest in investing more funds in different sectors which range from agriculture, mining, manufacturing, real estate among others in the country....
UAE Exchange celebrates customer loyalty
Every year, UAE Exchange commemorates its customers, by celebrating Customer Loyalty from 1st to 10th June, 2015. Special discounts, offers, promotions, are conducted giving an opportunity to customers to win exciting prizes....
The future of e-business and its contribution to Uganda
Going forward, business owners in the country albeit not all, ought to review their business s and plug in to e-commerce....
KCCA bans posters in city
As we draw closer to elections and campaigns, Kampala Capital City Authority (KCCA) has issued a warning to all those who intend to place posters and advertisements to seek the authority's permission and clearance or face the law...
Sudhir’s tenants protest paying rent in dollars
Over 100 traders renting on Sudir Rupareria’s shopping mall on Market Street, on Monday morning took to the streets protesting paying their monthly rent charges in US dollars...
With Eddie Kenzo’s win at the BET awards, is Ugandan music being recognized worldwide?
Yes
No
Can't Say
follow us
subscribe to our news letter