Uganda Clays rights iissue opens today
Mar 09, 2008
THE offer of the four million additional Uganda Clays (UCL) shares starts today and will end next month. The rights issue, which is the first of its kind in the 10-year history of the Uganda Securities Exchange (USE), will give an opportunity to UCL shareholders to acquire each additional share at a
By Peter Kaujju
THE offer of the four million additional Uganda Clays (UCL) shares starts today and will end next month. The rights issue, which is the first of its kind in the 10-year history of the Uganda Securities Exchange (USE), will give an opportunity to UCL shareholders to acquire each additional share at a discounted price of sh2,650.
In the issue, UCL, also the first company to list on the stock exchange in 2000, wants to raise sh10.6b. The sh10.6b is part of the amount needed to fund construction of a second factory in eastern Uganda.
Njoroge Nganga, the general manager of Dyer and Blair Uganda, the transaction advisors and lead sponsoring brokers for the offer, said a shareholder may choose to take all, half or none of the shares allotted to him or her.
“All shareholders who held UCL stocks as of February 21 qualify for the new shares. We have sent out provisional allotment letters to them showing how many shares they held as of that date and how many new shares they are entitled to,†Nganga said.
“The letters were mailed directly to the shareholders on the address stated on share certificates,†he said.
Shareholders have to contact their brokers to process the application as the receiving bank will not receive applications that will have not passed through a broker.
Other interested parties can participate in the rights issue by acquiring them on USE when trading of the new shares commences on April 24. Last week, a UCL share was going for sh6,480.
The nine-counter stock exchange has recorded increased activity, with share prices going up.
THE offer of the four million additional Uganda Clays (UCL) shares starts today and will end next month. The rights issue, which is the first of its kind in the 10-year history of the Uganda Securities Exchange (USE), will give an opportunity to UCL shareholders to acquire each additional share at a discounted price of sh2,650.
In the issue, UCL, also the first company to list on the stock exchange in 2000, wants to raise sh10.6b. The sh10.6b is part of the amount needed to fund construction of a second factory in eastern Uganda.
Njoroge Nganga, the general manager of Dyer and Blair Uganda, the transaction advisors and lead sponsoring brokers for the offer, said a shareholder may choose to take all, half or none of the shares allotted to him or her.
“All shareholders who held UCL stocks as of February 21 qualify for the new shares. We have sent out provisional allotment letters to them showing how many shares they held as of that date and how many new shares they are entitled to,†Nganga said.
“The letters were mailed directly to the shareholders on the address stated on share certificates,†he said.
Shareholders have to contact their brokers to process the application as the receiving bank will not receive applications that will have not passed through a broker.
Other interested parties can participate in the rights issue by acquiring them on USE when trading of the new shares commences on April 24. Last week, a UCL share was going for sh6,480.
The nine-counter stock exchange has recorded increased activity, with share prices going up.