August 21, 2012 / 8:12 AM / 5 years ago

Uganda power firm Umeme picks advisers for IPO

NAIROBI, Aug 21 (Reuters) - Ugandan power distributor Umeme has picked a team of advisers for its dual listing of shares on both the Ugandan and Kenyan bourses, the company said on Tuesday.

The initial public offer will be the first cross-listing by a non-Kenyan firm in the east Africa region, bringing the goal of closer economic ties a step nearer.

Umeme said in a statement seen by Reuters on Tuesday it had selected Stanbic Bank of Uganda as transaction adviser and lead receiving bank, with African Alliance acting as sponsoring stockbroker.

It said it expected to announce next month more details of the IPO, which will raise an as yet unspecified amount to be invested in projects like prepayment metering.

The company holds a 20-year electricity distribution concession in east Africa’s third-largest economy and is 100 percent owned by emerging markets private equity firm Actis.

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 is addressing the shortage by building the Bujagali falls hydropower plant on the Nile river. (Reporting by Duncan Miriri; Editing by Greg Mahlich)

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