Baroda Sells Shares
BANK of Baroda Uganda Limited, one of the nine commercial banks operating in the country, yesterday started the sale of its shares to the public under the initial public offer (IPO), making it the first financial institution to list on the Uganda Securit
By Stephen Ilungole
BANK of Baroda Uganda Limited, one of the nine commercial banks operating in the country, yesterday started the sale of its shares to the public under the initial public offer (IPO), making it the first financial institution to list on the Uganda Securities Exchange (USE).
The IPO for the eight million shares each selling at sh600, will run for at four weeks, beginning yesterday midday, until September 27.
By 11:00am yesterday, over 300 application forms had been issued through the bank’s head office on Kampala Road.
An officer said given the high response from the public, the allotment of shares may be on first come, first serve basis.
Application forms and the prospectus are issued by all the authorised selling agents and receiving banks after full payment.
The selling agents include MBEA Brokerage Services Uganda Limited, the lead and sponsoring brokers, Baroda Capital Markets, Crane Financial Services, Equity Stock Brokers, Uganda Commercial Bank and Barclays Bank.
Others are the Centenary Rural Development bank, Crane Bank, Nile bank, Orient Bank, Stanbic Bank and Uganda Commercial Bank.
MBEA boss, Andrew Owiny, said the allotment of shares will be done on October 17, while the share certificates for the successful applicants will be issued on November 7.
He said the D-Day for the official trading, buying and selling on the USE, after the IPO, will start on November14.
Stock brokers were yesterday upbeat that the listing of one of the most profitable banks in the country would stimulate trading at the four-year bourse that has seen limited activity due to few listed companies.
“Certainly, Baroda being a profitable bank, there will definitely be increased activity at the bourse. Many people will be interested in owning shares, expecting dividends,†a broker said.
The listing of Baroda, brings to five the number of equities listed on the USE, after Uganda Clays, British American Tobacco Uganda, the East African Breweries and Kenya Airways.
Baroda managing director P. L Kagalwala said their shareholders “put in significant resources to facilitate the listing onto USE.â€
Ends
BANK of Baroda Uganda Limited, one of the nine commercial banks operating in the country, yesterday started the sale of its shares to the public under the initial public offer (IPO), making it the first financial institution to list on the Uganda Securities Exchange (USE).
The IPO for the eight million shares each selling at sh600, will run for at four weeks, beginning yesterday midday, until September 27.
By 11:00am yesterday, over 300 application forms had been issued through the bank’s head office on Kampala Road.
An officer said given the high response from the public, the allotment of shares may be on first come, first serve basis.
Application forms and the prospectus are issued by all the authorised selling agents and receiving banks after full payment.
The selling agents include MBEA Brokerage Services Uganda Limited, the lead and sponsoring brokers, Baroda Capital Markets, Crane Financial Services, Equity Stock Brokers, Uganda Commercial Bank and Barclays Bank.
Others are the Centenary Rural Development bank, Crane Bank, Nile bank, Orient Bank, Stanbic Bank and Uganda Commercial Bank.
MBEA boss, Andrew Owiny, said the allotment of shares will be done on October 17, while the share certificates for the successful applicants will be issued on November 7.
He said the D-Day for the official trading, buying and selling on the USE, after the IPO, will start on November14.
Stock brokers were yesterday upbeat that the listing of one of the most profitable banks in the country would stimulate trading at the four-year bourse that has seen limited activity due to few listed companies.
“Certainly, Baroda being a profitable bank, there will definitely be increased activity at the bourse. Many people will be interested in owning shares, expecting dividends,†a broker said.
The listing of Baroda, brings to five the number of equities listed on the USE, after Uganda Clays, British American Tobacco Uganda, the East African Breweries and Kenya Airways.
Baroda managing director P. L Kagalwala said their shareholders “put in significant resources to facilitate the listing onto USE.â€
Ends