Standard Bank launched Uganda's biggest initial public offering (IPO) on Friday, offering 20 percent of its Ugandan unit in a share auction that is expected to raise more than 71 billion shillings ($39.11 million).
The South African bank said it was offering 1.02 billion shares at 70 shillings per share, giving the Ugandan unit a market value of 358.3 billion shillings ($197 million).
"This is the biggest issue on the Uganda Securities Exchange," said Daniel Nsibambi, a spokesman for Stanbic Bank Uganda. "Interest has been tremendous. All our branches are besieged with people buying shares."
The offer period closes on December 22. The shares are expected to list in January on the Uganda Securities Exchange in Kampala. Most purchases on Friday came from individual retail investors in Uganda, with some interest from foreign players. "There's strong interest from London, mainly from Ugandans in the diaspora. We've seen buying from Kenya and South Africa. We're getting inquiries from all over the world," Nsibambi said.
The last record IPO on the Uganda Securities Exchange was DFCU Bank, which sold 79 million shares or just under 40 percent of its holdings in 2004. The offering raised 45 billion shillings.