×

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

(Adds details)

NAIROBI, Oct 12 (Reuters) - Uganda's sole power distributor, Umeme, has priced its 622.38 million shares to be sold through an 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 markets private equity firm Actis, is offering a 38.3 percent of its issued share capital to raise funds to reduce its interest-bearing debt, it said in a statement.

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

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

A total of 20 percent of the shares will be reserved for retail investors in East Africa, 25 percent for qualified institutional investors in the region, 46 percent for foreign investors while 9 percent will be reserved for staff, Umeme said.

Uganda suffers from chronic power supply problems which have long distressed businesses, slowed economic growth and stymied development. The generating capacity deficit is estimated at around 130 megawatts.

However, the land-locked state has tried to address the shortage by building the Bujagali falls hydropower plant on the Nile 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