Uganda’s Umeme to list at NSE

Uganda’s principal power distribution company, Umeme is set to list on the Nairobi Securities Exchange (NSE) and the Uganda Securities Exchange (USE) through an initial public offering (IPO).

The company is looking to raise capital on the two bourses in October in order to finance the expansion of Uganda’s electricity distribution network.  

According to the Uganda Electricity Authority, Umeme’s customers have been on a steady upward trend driven by the demand for power in the country.

Its statistics show that customers had gone up to 443,653 in the third quarter of last year, from 315,249 in the first quarter of 2006.

Established in 2005, Umeme won a 20-year concession from the Uganda government for power distribution.

It is owned by UK-based pan-emerging markets private equity firm Actis Capital. The IPO is expected to serve as a partial exit for Actis in Umeme, through reducing its shareholding in the company.