Tuesday, October 23, 2012

Investing on the Uganda Securities Exchange....UMEME IPO

Hey Dolls,

Hoping to raise capital on the Ugandan market, Umeme, a power distributing company, has made an  Initial Public Offer (IPO) following approval from the Capital Markets Authority and the Uganda Securities Exchange (USE). About 622.38 million shares are being sold at Shs 275 each. The last time the USE had an IPO offer was 3 years ago. I was living hand to mouth then and had no savings to speak of. This time round I am well equipped.I have been religiously putting aside money for the baby. I don't believe in just letting it sit on a bank  account making the institution richer while it earns pitiful interest so this is a superb opportunity for me/baby(It's not my money technically).

I am quite reliably informed on the happenings of the stock exchange as a result of my own research and taking part in a few financial workshops so this is an easy decision for me to take. But this morning, I decide to look at this IPO from a layman's point of view. So I set about reading up on the offer and the USE in general. At first I was shocked, then alarmed, now am truly sickened. The level of financial illiteracy in this country is deeply waring. It has been barely covered by the country's dailies of which many of them are giving biased information. Do they not have an economic analyst in their employ? Then there's hardly any information about investing on the USE aside from basic how to's from their site and a few articles from bloggers here and there. Compared to our Kenyan neighbor's, this situation is pathetic but I guess it makes sense since half(yes, half) of the retail investors on the USE are Kenyan(unreliable info from a broker on the USE).

 I weep for my beloved country.

If you are interested in the USE, try the links below. They should give you a good head start;

For the UMEME IPO;