IPO Fever Hits Africa: Stanbic Ugandaposted by MR WAVETHEORY at 12/27/2006 10:31:00 PM
The IPO was priced at Shs70 ($0.04). That's right $.04. The bank sold 1 billion shares and the deal closed right before the Christmas holiday on December 22nd. Before the Internet, Stanbic started out as a bank that ferried cash around its banks using taxis. Nice huh?
The IT strategy did wonders. Within a short period, all branches were converted to the Bankmaster software, which made it possible to network all branches. Its ATMs were rolled out in a massive way, making Stanbic the first bank to introduce ATMs in the rural areas.
Uganda has a relatively small banking sector comprised of 15 commercial banks, two development banks, over 80 forex bureaus, six credit institutions and 100 microfinance institutions.
Stanbic Uganda is a subsidiary of Standard Bank Group of South Africa - Africa's largest banking group with operations in 17 countries outside South Africa. The Group is also represented in 22 countries outside Africa.
The group's relationship with Uganda started in 1992 when Stanbic Bank Group, through Stanbic Africa Holdings, acquired the Grindlays Africa network.
Stanbic Bank Uganda was 51 per cent owned by Grindlays. In 1996, the government of Uganda sold its 49 per cent shareholding in the company to Stanbic Africa Holdings Ltd.
Total loans and advances are $694 million, while total customer deposits are at $1.141 billion and total banking assets $1.79 billion.
How to Buy Shares?
The Ugandan stock exchange has 9 stocks listed if you count Stanbic Uganda. You can see it is not particularly active or liquid. In fact, the stock exchange trades 2 times each week from 10 am - 12 pm on Tuesdays and Thursdays.
|19 December, 2006||Bank of Baroda Uganda Ltd||0||0||Ushs. 1,000|
|19 December, 2006||British American Tobacco Uganda Ltd||0||0||Ushs. 470|
|19 December, 2006||DFCU Limited||3||1,692,062||Ushs. 420|
|19,December, 2006||East African Breweries Limited||0||0||Ushs. 3,679|
|19, December, 2006||Jubilee Holdings Limited||0||0||Ushs. 9,001|
|19 December, 2006||Kenya Airways||0||0||Ushs. 3,000|
|19 December, 2006||New Vision Printing & Publishing Company Ltd||0||0||Ushs. 435(ex)|
|19 December, 2006||Uganda Clays Limited||2||750||Ushs. 2,300|
The broker managing the IPO is MBEA. (Details of the deal.) Shares start trading on January 15, 2007.