Nation Media Group cross-lists shares on USE today


Kampala

Shares of the Nation Media Group, the parent company of Monitor Publications, will start trading on the Uganda Securities Exchange today. The transaction will give resident investors a chance to buy into NMG which has majority shareholding in Monitor Publications, Africa Broadcasting (NTV), KFM radio and Nation Courier Service in Uganda. The Group has operations in Kenya, Uganda and Tanzania.

Shares for purchase
Through the transaction, the 157,118,572 shares in issue at the Nairobi Stock Exchange (NSE) in Kenya will be available to investors for purchase, according to Mr Kenneth Kitariko the Chief Executive Officer, African Alliance Uganda, an investment adviser of the stock brokerage firm. The shares are expected to open for trading at the last traded price in Nairobi yesterday.

Thereafter, demand and supply for the share at the USE will determine the price. By close of business yesterday, NMG shares were trading at KShs165 (UShs4, 620). “Interest for the NMG shares is high among the high net worth, retail and institutional investors,” Mr Kitariko told Daily Monitor in an interview yesterday.

Some of the first beneficiaries of the cross listing are NMG’s permanent employees in Uganda who were allocated 200 shares each this year as part of the NMG’s 50th anniversary celebrations.
NMG shares have been traded since 1973 when they were listed on the Nairobi Stock Exchange. The sale of the shares in Uganda will present an opportunity for local investors to own a piece of East Africa’s largest media house and share in the vision to be the media of Africa for Africa, according to Dr Gitahi Githinji, the managing director of Monitor Publications.

NMG owns a string of newspapers, radio stations, and free to air television stations in Kenya, Tanzania and Uganda. “The cross-listing will enhance the company’s profile in Uganda and enable the firm’s clients to buy shares and to be part of NMG’s vision as shareholders of the company,” Dr Githingi told staff recently.

By cross-listing in Kampala, NMG will become the sixth company to cross-list on the USE from the NSE and the 13th company to be quoted on the Kampala bourse. Other cross-listed companies include; Kenya Airways, East African Breweries, Kenya Commercial Bank, Equity Bank and Jubilee Holdings.

The company is also set to cross-list its shares on Rwanda’s Over the Counter Market in Kigali on November 2 and on the Dar es Salaam Stock Exchange at a later date, according to Mr Linus Gitahi, the chief executive officer of NMG.

Nation Media Group cross-lists shares on USE today


Kampala

Shares of the Nation Media Group, the parent company of Monitor Publications, will start trading on the Uganda Securities Exchange today. The transaction will give resident investors a chance to buy into NMG which has majority shareholding in Monitor Publications, Africa Broadcasting (NTV), KFM radio and Nation Courier Service in Uganda. The Group has operations in Kenya, Uganda and Tanzania.

Shares for purchase
Through the transaction, the 157,118,572 shares in issue at the Nairobi Stock Exchange (NSE) in Kenya will be available to investors for purchase, according to Mr Kenneth Kitariko the Chief Executive Officer, African Alliance Uganda, an investment adviser of the stock brokerage firm. The shares are expected to open for trading at the last traded price in Nairobi yesterday.

Thereafter, demand and supply for the share at the USE will determine the price. By close of business yesterday, NMG shares were trading at KShs165 (UShs4, 620). “Interest for the NMG shares is high among the high net worth, retail and institutional investors,” Mr Kitariko told Daily Monitor in an interview yesterday.

Some of the first beneficiaries of the cross listing are NMG’s permanent employees in Uganda who were allocated 200 shares each this year as part of the NMG’s 50th anniversary celebrations.
NMG shares have been traded since 1973 when they were listed on the Nairobi Stock Exchange. The sale of the shares in Uganda will present an opportunity for local investors to own a piece of East Africa’s largest media house and share in the vision to be the media of Africa for Africa, according to Dr Gitahi Githinji, the managing director of Monitor Publications.

NMG owns a string of newspapers, radio stations, and free to air television stations in Kenya, Tanzania and Uganda. “The cross-listing will enhance the company’s profile in Uganda and enable the firm’s clients to buy shares and to be part of NMG’s vision as shareholders of the company,” Dr Githingi told staff recently.

By cross-listing in Kampala, NMG will become the sixth company to cross-list on the USE from the NSE and the 13th company to be quoted on the Kampala bourse. Other cross-listed companies include; Kenya Airways, East African Breweries, Kenya Commercial Bank, Equity Bank and Jubilee Holdings.

The company is also set to cross-list its shares on Rwanda’s Over the Counter Market in Kigali on November 2 and on the Dar es Salaam Stock Exchange at a later date, according to Mr Linus Gitahi, the chief executive officer of NMG.

Yes, crosslisting to Uganda is to give UG citizens opportunity. My curiosity was to have a feel of the reception the stock is receiving in Uganda and whether it will uplift USE which is still moving at a snail's pace.

Introduction of NMG @Pkoli is not expected to improve market activity on the short term in Uganda. Long term yes it is possible, with orientation of the locals and as more fund managers especially from west africa are looking in that direction.

Notable west African fund managers waiting in the wings to invest in Uganda bourse includes :-

Databank group (Ghana) going through African Alliance network

UBA Trustees (Nigeria) using United Bank For Africa (UBA) already existing in Uganda as the custodian


Stanbic IBTC Equity Fund (Nigeria) liasing with Stanbic Bank Uganda as the custodian.


The only limitation is that the liquidity may not really improve on the short term as this fund managers invest on long term bssis.

Another fund manager BGL Group (Nigeria) are investing in Ugandan money market. That is USD fixed deposit with Crane Bank Uganda.