IPO Fever Grips USE (but not local Ugandans?)
The Stanbic Bank (Uganda) listing appears to have been 3x oversubscribed. So, many investors will likely receive fewer shares than they applied for, but the final allocation will not be released for at least two more weeks.
The billion-share listing represents a 20% stake in the bank, a subsidiary of South Africa's Standard Bank Group.
According to local brokers, most of the demand for shares came from overseas Ugandans, Kenyans and investors as far afield as the US and UK.
The Uganda Securities Exchange is one of Africa’s more sleepy ones. I’m hoping this IPO stimulates more interest in the market among local Ugandans.
www.investinginafrica.net
7 comments:
I am very optimistic that the IPO will cultivate interest among Ugandans. The much awaited East African Stock Exchange will bring more East Africans, including Great Lakes residents, into the region's capital markets. (See my post on that issue)
I think the USE should do away with some of their funny rules.
1. brokers should be alloweed to make the market in order for the market to absorb moments of temporary illiquidity.
2. the "one day offer board thing" for deals over 200mn is utter rubbish and a hindrance to liquidity and effiency principls
3. they should remove limits of share price movements. If a share price has moved to extremes, they should suspend the counter.
4.they should support their members. I am suprised they are for this "East African Exchange" yet they know very well their members will not be able to compete with the members of the NSE - be it customer-base-wise or capital-wise. It reminds me of the duty thing when Uganda upped its duty to allign with Kenya's and lost its competitive advantage.
But I hope Stanbic will open a few eyes. The problem is, since Stanbic has not really been engaging its brokers in this IPO, how are all people who bought shares through Stanbic branches and are ignorant of brokerage firms and trading going to trade? Or they just wait for the dividends?
I wonder how much Kenyans contributed to the oversubscription!
Many Kenyan brokers had forged "relationships" with their Ugandan counterparts. Furthermore, AA(K) & D&B have offices Uganda thus easing the process for their customers.
Dear Visitors, This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster. Currently something is cooking in the Indian stock market, We know it but unfortunately we cant disclose the reason so openly. We strongly suggest everyone not to take any long position at these levels. We will see Pullback in the market very soon but that will be a fake one so don’t consider pullback as opportunity to go Long in market( Delivery based). As after that initial pullback we can see fall once again. As mentioned cant disclose it still giving minor hint see call and put section and think why you are not able to access few options and check December part and think who are the people behind it?? We suggest wait for falls to take delivery till then prefer only intraday else you will find yourself out of BSE and NSE one fine day. For any query feel free to contact us. Regards SHARETIPSINFO TEAM +91- 9891655316 +91- 9899056796 +91 - 9891890425
Dear Visitors, This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster. Currently something is cooking in the Indian stock market, We know it but unfortunately we cant disclose the reason so openly. We strongly suggest everyone not to take any long position at these levels. We will see Pullback in the market very soon but that will be a fake one so don’t consider pullback as opportunity to go Long in market( Delivery based). As after that initial pullback we can see fall once again. As mentioned cant disclose it still giving minor hint see call and put section and think why you are not able to access few options and check December part and think who are the people behind it?? We suggest wait for falls to take delivery till then prefer only intraday else you will find yourself out of BSE and NSE one fine day. For any query feel free to contact us. Regards SHARETIPSINFO TEAM +91- 9891655316 +91- 9899056796 +91 - 9891890425
Interesting story on IPO'S
Ways & Works Consulting is an ISO 9001:2015 certified HR Consulting Firm, Manpower Recruitment and Practical Training firm career with an aim to provide value aided service to employers Top hr consulting services india . with an in-depth understanding of their requirements. We are working as a perfect bridge between the employer and employee to fulfil their needs by placing the best suitable at place.
Post a Comment