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UPDATE 1-Uganda power firm Umeme prices IPO at 275 shillings per share

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NAIROBI, Oct 12 (Reuters) - Uganda's sole power distributor,Umeme, has priced its 622.38 million shares to be sold throughan Initial Public Offering (IPO) at 275 shillings ($0.11) each,a source close to the deal said on Friday.

The firm, which is 100 percent owned by pan-emerging marketsprivate equity firm Actis, is offering a 38.3 percent of itsissued share capital to raise funds to reduce itsinterest-bearing debt, it said in a statement.

It has a 20-year electricity distribution concession in eastAfrica's third-largest economy.

The IPO opens on Oct.15 till Nov.7. Some shares will becross-listed on the Kenyan bourse.

A total of 20 percent of the shares will be reserved forretail investors in East Africa, 25 percent for qualifiedinstitutional investors in the region, 46 percent for foreigninvestors while 9 percent will be reserved for staff, Umemesaid.

Uganda suffers from chronic power supply problems which havelong distressed businesses, slowed economic growth and stymieddevelopment. The generating capacity deficit is estimated ataround 130 megawatts.

However, the land-locked state has tried to address theshortage by building the Bujagali falls hydropower plant on theNile river.

($1 = 2605.0000 Ugandan shillings)

(Reporting by Duncan Miriri; Editing by James Macharia)

((nairobi.newsroom@reuters.com)(Tel: +254 20 2224717))

Keywords: UGANDA UMEME/IPO

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