70% New Vision extra shares taken
Jul 21, 2008
OVER 18 million New Vision rights were traded during the initial week of trading at the Uganda Securities Exchange (USE), representing 70% of rights on offer.
By Sylvia Juuko
OVER 18 million New Vision rights were traded during the initial week of trading at the Uganda Securities Exchange (USE), representing 70% of rights on offer.
Gervase Ndyanabo, New Vision’s company secretary, said in an interview that the development reflected investors’ confidence in the media company.
“This has gone beyond the minimum we set for the rights issue to succeed. To have 70% of the rights traded in the first week is significant and means the rights issue is headed for success,†Ndyanabo said.
The company set an ambitious clause in the information memorandum of having a minimum subscription at 65% (or 16 million shares) of the offer for the rights issue to be considered successful.
A total of 14 million rights were traded at the beginning of the week, while Thursday’s trade saw over four million rights exchange hands with a turnover of sh1.61b.
Over 131,189 Stanbic shares were traded and 1,963 Uganda Clays shares exchanged hands with Thursday’s turnover at sh1.66b.
The USE All Share Index dropped to 1,047.80 from Tuesday’s 1,605.21.
Brokers said most of the New Vision rights were snapped up by institutional investors.
The company’s biggest shareholder, the Government, did not take up its rights in order to allow more participation by the public.
On July 10, the multi-media company commenced the offer of 25.2 million additional shares at a discounted price of sh1,100 to all shareholders.
The company hopes to raise sh28b from the rights issue, which will be used to finance major expansion plans like purchase of a modern and new printing press, construction of a bigger capacity factory and office block.
The rights trading will close on August 7, while the rights issue will be concluded on August 13.
OVER 18 million New Vision rights were traded during the initial week of trading at the Uganda Securities Exchange (USE), representing 70% of rights on offer.
Gervase Ndyanabo, New Vision’s company secretary, said in an interview that the development reflected investors’ confidence in the media company.
“This has gone beyond the minimum we set for the rights issue to succeed. To have 70% of the rights traded in the first week is significant and means the rights issue is headed for success,†Ndyanabo said.
The company set an ambitious clause in the information memorandum of having a minimum subscription at 65% (or 16 million shares) of the offer for the rights issue to be considered successful.
A total of 14 million rights were traded at the beginning of the week, while Thursday’s trade saw over four million rights exchange hands with a turnover of sh1.61b.
Over 131,189 Stanbic shares were traded and 1,963 Uganda Clays shares exchanged hands with Thursday’s turnover at sh1.66b.
The USE All Share Index dropped to 1,047.80 from Tuesday’s 1,605.21.
Brokers said most of the New Vision rights were snapped up by institutional investors.
The company’s biggest shareholder, the Government, did not take up its rights in order to allow more participation by the public.
On July 10, the multi-media company commenced the offer of 25.2 million additional shares at a discounted price of sh1,100 to all shareholders.
The company hopes to raise sh28b from the rights issue, which will be used to finance major expansion plans like purchase of a modern and new printing press, construction of a bigger capacity factory and office block.
The rights trading will close on August 7, while the rights issue will be concluded on August 13.