While we wait patiently for the Safaricom IPO which seems to be still in trouble, despite efforts to make it proceed as planned, I thought looking at cross border IPO’s will be a bit comforting. I came across some good IPO’s that will take place in Uganda and Tanzania soon:
National Microfinance Bank {NMB} IPO (Tanzania)
This IPO has been way over due since March, but will
take place in September this year. Although it’s only open to Tanzanians, who knows we may find a way to beat them at their own game.
NMB is a private company limited by shares with an authorized share capital of TShs.25,000,000,000 divided into 2,500,000 ordinary shares of a nominal value of TShs.10,000.00 of which 2,000,000 shares have been issued and are fully paid. It has 115 branches and it's the second largest bank in TZ ranked by assets. It is the principal commercial bank to the Government for payments nationwide.
In 2005 the TZ Government sold 49% of its shares to Rabobank Nederland, NICO Limited, Exim Bank and TCCIA.
Currently the shareholders of NMB are as follows:
v The Government of the United Republic of Tanzania -
51.0%v Rabobank Nederland -
34.9%v National Investment Company Limited (NICO) Limited -
6.6%v EXIM Bank Tanzania Limited -
5.8%v Tanzania Chambers of Commerce Industries and Agriculture …(TCCIA) -
1.7%
The Government is planning to sell a further 21% of NMB shares through an IPO of which 5%will be sold to NMB employees.
The bank reported a net profit of USD 28 million for 2006, and paid out about USD 6.35 million in dividends.
Coming Soon: Another IPO from Tanzania is from the
CRDB Bank. A
resolution was passed in their June AGM to have the bank, which is the 2nd ranked in profitability terms, listed on the DSE.
National Insurance Corporation {NIC} IPO – Uganda
The NIC IPO in Uganda has already been
publicized in the local dailies so all I can do is outline the details. The UG government will be ceding its remaining 40% stake in the company after selling 60% to IGI from Nigeria in 2005.
Dyer & Blair {Kenya} and Uganda's Merchant Bank of East Africa Brokerage Services are the
lead advisors. (Remember D&B still have got Safaricom IPO)
The timeline
• Aug-Sept: Due diligence ahead of IPO
• Sept-Oct: Approval of Capital Markets Authority and Uganda Securities Exchange
• Nov-Dec: Sale shares to the public
• Jan 2008: Listing on the stock exchange
The NIC IPO seems to have already started affecting some counters in the USE as I learned from this
lady Blogger from Ug.
Other IPO’s that are rumored to be on their way in Uganda include:
v Barclays bank Uganda
v Kakira Sugar Works
v Sheraton Kampala hotel
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