Tuesday, January 16, 2007

IPO Watch: Stanbic Uganda Share Allocation

It’s official. The Stanbic Uganda IPO resulted in a 200% oversubscription. Investors applied for more than $118 million worth of shares, but only $39 million was on offer.

So it appears that there will be many disappointed punters. But by and large they won’t be Ugandan. All but 36 of the 15,488 individual Ugandan share applicants will receive all the shares that they applied for. Their stakes were capped at roughly $80,000.

Foreign investors, on the other hand, will have their IPO stakes capped at 109,500 shares. This equates to $4,255 or Ksh307,850. The 21,000 foreign applicants were allocated 48% of the total shares offered.

It could have been much worse for non-Ugandans. A $4,000 stake is actually heftier than I’d expected. Still, there will be some $60 million worth of foreign currency that will be looking for a new home.

Refunds will begin to be sent out on January 19. Stanbic Uganda shares will begin trading on the Uganda Securities Exchange on January 25, 2006.

www.investinginafrica.net

9 comments:

Odegle said...

this information has been replicated verbatim in almost all the 'investor' blogs today. it first apeared in stockskenya.com late yesterday. is there anyone with more information ? or the courtesy to acknowledge the source going forward?

we all would like to know if there are any details but reading plagiarism is not at all entertaining.

Ryan Shen-Hoover said...

Odegle - Primary source is linked to within the post.

Additional info can be found here: http://www.mbea.net/news.details.php?storyId=72

coldtusker said...

Odegle - You are being unfair since the info Ryan has put out there/quoted is from the MD of Stanbic. I am sure Stanbic wants this news disseminated.

Stockskenya probably used the same source (MD's interview or Stanbic Press Release) or they had inside information.

Furthermore, I checked & Ryan's telling is his own. Of course, he can't (& shouldn't) change the numbers just to be different!

BTW, the Monitor also reported the same information.

ACX said...

We are waiting to hear more about the IPO. Well what price do you think it is going to list?

Odegle said...

ok i agree that comment was a little harsh. but that info was all over the space.

has anyone got info on how the debut did? trading should be done by now i guess

Ryan Shen-Hoover said...

Odegle, closing price can be found here:

http://jhabola.blogspot.com/2007/01/stanbic-closes-at-shs-205.html

bankelele said...

I think the allocation was more than fair and most (foreign) investors will be happy.

Odegle: Stanbic published the allocation results in the The East African this week

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